Deliveroo reported that losses had widened in its full-year results, with the delivery app vowing to break even in around two years’ time.
In 2021, Deliveroo recorded a loss before income tax of £298.2m, a change of 40% from 2020 when the figure stood at £212.6m.
Adjusted EBITDA fell to a loss of £131m compared with £11m the year prior, which Deliveroo attributed to increased marketing spend and technology investment.
Revenues for the year grew by 57% to £1.8bn, while the number of orders surged 73% to 300.6 million.
Gross transaction value (GTV) in the UK and Ireland grew by 71% to £3.5bn, with coverage of the UK population expanding to 77% at the end of 2021 compared with 53% at the end of 2020.
Overall GTV rose 70% in £6.6m.
Deliveroo’s on-demand grocery proposition now has 11,000 partner sites globally at the end of 2021 compared with 7,000 the year prior. Grocery reached 8% of GTV last year.
Deliveroo said its full-year GTV guidance for 2022 ranges from 15% to 25% growth due to tough comparisons to periods of lockdown.
The delivery app now aims to reach an adjusted EBITDA break-even point at “some point during H2 2023-H1 2024”.
Founder and chief executive Will Shu said: “We are excited about the opportunities ahead and have today laid out our plans on our longer-term path to profitability. This is a key focus for the company this year and beyond.
“We aim to reach break-even at some point during H2 2023-H1 2024 on an adjusted EBITDA basis. And by 2026, we aim to reach a 4%+ adjusted EBITDA margin, with further upside potential beyond 2026.
“At the same time, this year it is clear that all three sides of our marketplace in Europe will face headwinds due to inflationary pressures, the removal of economic stimulus and the broader geopolitical and economic impacts of the conflict in Ukraine. We will continue to monitor developments closely.
“Our 2022 guidance reflects our caution on these factors, but we are confident in our ability to adapt financially to a rapidly changing macroeconomic environment.”
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