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Deliveroo Reports Profit Surge and Strong Revenue Growth

Deliveroo shows significant profit gain as fiscal 2024 profit reaches £2.9M, contrasting last year's loss. With adjusted EBITDA up 52%, the outlook for fiscal 2025 remains promising with continued growth anticipated.

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AI Rating:   7
Earnings and Profitability
Deliveroo plc reported a profit of £2.9 million for fiscal 2024, a significant turnaround from the prior year's loss of £31.8 million. This shift to profitability could positively impact investor sentiment, leading to expectations of better performance in the stock market.

Adjusted EBITDA Growth
The company's adjusted EBITDA surged 52% to £129.6 million, indicating a strong operational performance. The increase in adjusted EBITDA margin to 1.7% from 1.2% reflects improved efficiency and profit potential, which is a favorable sign for stakeholders.

Revenue Growth
Deliveroo reported a 2% increase in revenue, reaching £2.07 billion, alongside a constant currency growth of 3%. This growth, although modest, shows that the company is maintaining its market presence despite economic challenges. The growth in gross transaction value (GTV) by 5% to £7.43 billion similarly underscores strength in consumer demand.

Future Outlook
The projection of adjusted EBITDA for fiscal 2025 is between £170 million to £190 million, which signifies optimism in future operations. Achieving a GTV growth in the high-single digits at constant currency should further reassure investors of continued performance improvement.

The medium-term goal of adjusted EBITDA margin exceeding 4% also suggests that the company is focused on enhancing profitability metrics. The anticipated mid-teens percentage GTV growth aligns with expectations and signifies a robust business outlook overall. Overall, these indicators could positively influence stock prices as they reflect improving financial health.
Stocks:  DROOF