Proactive Investors - Deliveroo PLC (LON:ROO) has announced a £150 million share buyback as the online food delivery firm reported its first profit over the first half of the year.
A £1.3 million profit was recorded for the six months to June, against an £82.9 million loss a year earlier, Deliveroo said on Thursday.
Positive free cash flow of £3.2 million was also recorded, following a £27.7 million deficit in the first half of 2023.
Chief executive Will Shu noted the return to profit and positive cash flow marked “two major financial milestones,” coming in part on a “stabilising” consumer environment.
“I am encouraged by the inflection we are currently seeing in consumer behaviour in many of our markets,” he said, with order frequency and customer retention both growing.
Revenue ticked up 2% on a constant currency basis to £1.03 billion, as orders came in 2% higher.
Gross transaction values increased by 7% in the UK and 5% internationally on a constant currency basis.
Deliveroo added grocery sales had grown to take a larger share of its gross transactions, with a new premium subscription tier also rolled out in the UK alongside more brand partnerships.
“We operate across attractive verticals, in large, underpenetrated markets, and it's clear that there is a lot of room for growth in our industry,” Shu added.