Deliveroo (ROO. L) said on Friday it saw strong growth in its last quarter. Platform gross sales were up 7%. That increase was driven by additional orders. It also was driven by higher customer spending. The meal delivery company sounded optimistic about earnings in 2024.
The British company published its report on Thursday. They expect adjusted core earnings at the upper end of their guidance. The forecast was between £110 million and £130 million. That translates to about $134 million to $159 million.” Deliveroo confirmed it would be free cash flow positive for the full year. This is in keeping with previous guidance.
Factors Driving Growth
Several things contributed to Deliveroo’s good performance. A large part of that was due to increased order volume. Consumers kept using the platform for meal deliveries. Sales were also helped by higher average order values. Customers paid more with each order. Which points to a readiness to pay for convenience and quality.
Delivery has made strides in terms of streamlining its operations. The company simplified its delivery network. They poured money into technology that maximized logistics. These were likely a factor in increasing profitability. The company has added to its offerings, too. They added more restaurant and grocery partnerships. This expanded their appeal to consumers.
Looking Ahead to 2024
Deliveroo’s strong Q4 performance is an omen for 2024. The Company anticipates continued growth with the year ahead. They will probably want to emphasise their profitability. They will seek to grab market share, too. Competition remains fierce in the meal delivery market. Deliveroo will have to come up with some new things to stay on top. They will probably spend money on new technologies and partnerships. The company’s goal is to create an integrated customer experience. They want to provide varied food choices. The positive outlook for Deliveroo reflects confidence in its business model. We think we can still chase solid results.
