Deliveroo has reported its preliminary results for FY22, with gross profit up 30%, revenue up 14%, and gross transaction value (GTV) up 9% year-on-year.

Loss for the year improved by £36m to -£294m. GTV rose from £6,304m in 2021 to £6,848m in 2022, while revenue rose from £1,735m to £1,974m.

The delivery company further reported “excellent progress” towards profitability, with positive adjusted EBITDA in H2 2022. Improvement in adjusted EBITDA margin was “significantly ahead of expectations”, rising to 0.2% in H2 2022 from -1.5% in H1 and -2.7% in H2 2021.

The results were attributed to operational initiatives underpinning key profit levers: optimisation of consumer fees, efficiency gains in the rider network, efficient targeting of marketing spend, and further action taken in early 2023 to drive overhead savings.

It strengthened its consumer value proposition, including on-demand grocery, which accounted for 11% of GTV in H2 2022. The year also saw the measured rollout of Deliveroo Hop and Hop as a service.

Deliveroo also cited market share gains in the UK & Ireland as well as key markets such as France and Italy. It has optimised its portfolio of market, launching in Qatar in October 2022 and exiting Australia and the Netherlands in November.

GTV growth is expected to be low- to mid-single digits in 2023, with Q1 growth expected to be broadly flat but “improving through the year as we continue to deliver on our plans and the comparison base eases.”

2023 adjusted EBITDA is expected to continue to improve and be in the range of £20-50m, weighted towards H2.

Deliveroo also cited continued growth of its advertising platform, with ad revenue reaching annualised run-rate of £40m or 0.6% of GTV in Q4 2022.

Will Shu, founder and CEO, said: “I’m proud of our performance in the past 12 months. Our team has delivered in difficult market conditions, with continued growth and share gains in our key markets. I’m particularly pleased that the Company reached adjusted EBITDA profitability in the second half of last year. This is a significant step on our path to sustainable cash generation, and we achieved this milestone a year earlier than our guidance by executing our strategy successfully despite headwinds from the market environment.

The macroeconomic outlook for the year ahead remains uncertain, but our record in the past 12 months makes me optimistic about our ability to adapt and continue to deliver on our plans to drive profitable growth. I want to thank the whole Deliveroo team and our consumers, riders and merchants for their ongoing commitment and I look forward to more progress together in 2023.”