Deliveroo has posted its first annual profit, reporting a £3m gain in 2024 compared to a £32m loss in 2023. This marks a significant turnaround for the food delivery company after years of financial struggles following its challenging 2021 stock market debut, which initially saw shares drop by 26%.

The company’s revenue increased to £2.1bn as the total value of orders rose 5% to £7.4bn. Grocery deliveries accounted for 16% of total sales in the second half of the year, reflecting Deliveroo’s efforts to diversify beyond restaurant takeaways. The company also broadened its retail offering, adding brands such as Ann Summers, B&Q, and The Perfume Shop to its platform.

Deliveroo’s success in reaching profitability comes despite a challenging consumer environment and ongoing competition from rivals like Uber Eats and Just Eat Takeaway. The company’s share price dropped by 8% following the announcement, as analysts described profit expectations as “soft.”

Founded in 2013 by Will Shu and Greg Orlowski, Deliveroo grew rapidly with substantial backing from venture capital investors, raising around £1bn before its initial public offering (IPO) in 2021, which secured an additional £1bn. The IPO valued the company at £7.6bn, boosted by increased demand for food delivery services during the pandemic. However, the company’s stock value dropped to less than 80p by August 2022 as the delivery market cooled post-pandemic.

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Deliveroo’s long-term growth strategy includes increasing its presence in grocery and retail delivery to complement its core takeaway business. While profitability is a positive step, the company remains under pressure to deliver consistent financial performance and satisfy investor expectations.

The profit announcement signals a key milestone for Deliveroo as it seeks to strengthen its market position and navigate competitive pressures. Future performance will likely depend on maintaining customer engagement, improving operational efficiency, and successfully expanding into new delivery segments.