Half Year 2024 Deliveroo PLC Earnings Call Transcript
Key Points
- Deliveroo PLC (DROOF) achieved positive net profit and positive free cash flow in the first half of 2024.
- The company saw year-on-year growth in orders and encouraging GTV growth momentum in the UKI and international markets.
- Deliveroo PLC (DROOF) announced a GBP150 million share buyback program, reflecting confidence in their financial outlook.
- The company made significant progress in its grocery vertical, with grocery reaching 14% of group GTV and strong double-digit growth.
- The PLUS loyalty program saw enhancements, including the introduction of a new Diamond tier and revamped Gold tier, which are expected to drive consumer engagement and retention.
- The company faced challenges with food inflation impacting consumer spending, although this is showing signs of stabilization.
- International markets, particularly Hong Kong, experienced increased competitive intensity, affecting consumer behavior and discounting.
- Revenue growth lagged behind GTV growth due to investments in the CVP, impacting the take rate.
- The company had to make significant investments in targeted promotions to reinforce value perception, which may not be sustainable long-term.
- Marketing and overhead costs, while reduced, still represent a sizable opportunity for further efficiency improvements.
Good morning. Welcome to our half year results presentation for '24, I am Wlilliam Shu, Founder and CEO Deliveroo, and I'm joined by Scilla Grimble, our CFO. I'm going to start with a brief overview of the half before diving into some of the strategic and operational progress we've made in the first half that give us continued confidence in our medium term targets. Scilia will be going to take you through the financials. She will touch on capital allocation and then update you on guidance for the rest of the year. And after that, we'll move into Q&A. So let's get started with some key takeaways from the first half.
We are really happy with the first half and typically, I start these presentations by focusing in only inputs right away. But I want to take a few moments to focus on a few key outputs because we hit two very important milestones this half.
First, we delivered positive net profit. This is after exceptionals' and share-based payment charges. And secondly, we generated positive free cash flow again
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