British meals delivery company Deliveroo said that it achieved breakeven in the second half, helped by better cost control, and it expected continued progress towards profitability in 2023.
Shares in Deliveroo, which were priced at 390 pence when it listed in March 2021, rose 6% to 98 pence in early deals.
The company, which had benefited from surging demand during the pandemic, said the value of orders on its platform increased 6% to £1.8 billion ($2.2 billion) in the fourth quarter, as item price inflation offset a 2% drop in order numbers.
'Significant Improvements'
Founder and chief executive Will Shu said Deliveroo had achieved "significant improvements in profitability whilst also still delivering growth in a difficult macroeconomic environment".
"Amidst an uncertain outlook for 2023, we remain confident in our ability to adapt financially and to make continued progress on our path to profitability," he said in a trading update.
The company said it expected its core earnings margin for the full year to be about -1%.
The loss-making company, which pulled out of Australia and the Netherlands in 2022, had previously expected its earnings margin for the year to be between -1.2% and -1.5%.
Competitor's Performance
Rival Just Eat Takeway.com on Wednesday also forecast stronger earnings in 2023, even as its orders fell in the fourth quarter.
The company, which also competes with Uber Eats, said it had increased its share of key markets such as Britain, France and Italy in the year.
It reports its full-year results on 16 March.
News by Reuters, edited by Donna Ahern, Checkout. For more technology stories, click here. Click subscribe to sign up for the Checkout print edition.
