Operating profits at the Irish arm of takeaway food delivery service Deliveroo last year increased by 8.5% to €1.35m as revenues further increased.
New accounts show that operating profits rose at Deliveroo Ireland Ltd as revenues also increased by 8.5% from €47.89m to €51.98m.
The revenue increases of last year and 2022 have failed to keep pace with the breakneck 64% increase in revenues during the pandemic-hit 2021.
The directors for the firm state that the revenue increase in 2023 is “as a result of increased demand, the change in ordering behaviour and sales mix”.
The accounts show that pre-tax profits declined by 26% from €1.95m to €1.44m.
The decline in pre-tax profits is due to the company receiving €90,932 in finance income in 2023 compared to €709,621 in finance income in 2022.
The directors state that the company’s gross profits increased by 18% from €17.96m to €21.27m “reflecting both increased demand and the scalable unit economics of the business model.”
On the company’s future developments, the directors state that “the coming financial year will continue to be focused on improving our key customer value proposition pillars, i.e. service and selection, in order to further drive growth”.
Numbers directly employed by the company here last year decreased from 56 to 38 as staff costs dropped from €2.65m to €2.5m that included a share based payment charge of €45,362.
The company’s non-cash depreciation costs last year totalled €78,815. The company’s cost of sales totalled €30.7m and other operating expenses amounted to €12.92m while administrative expenses totalled €7m.
The firm recorded post tax profits of €1.25m after paying corporation tax of €185,852.
At the end of December last, the firm’s accumulated profits totalled €6.89m while the company’s cash funds decreased from €26.98m to €26.07m.
The UK headquartered Deliveroo was established only in 2013 and today its global business has a market capitalisation of £2.45 billion – which is up 22% on the market capitalisation of £2 billion in September 2023 but down sharply from £5 billion in October 2021.
Deliveroo today works with 160,000 restaurant and grocery partners in 10 markets around the world.
In August, the Deliveroo group said that it had achieved the twin milestones of positive net profit and free cash flow in the first half of this year.
Deliveroo also reported a better-than-expected 57% rise in earnings to £61.7m in the first half of 2024.
It reported net profit of £1.3m, compared to an £83m loss a year ago.
Reporting by Gordon Deegan