Deliveroo Ireland has reported a substantial increase in pre-tax profits for the previous year, reflecting continued growth in revenues. The Irish arm of the popular takeaway food delivery service revealed that its pre-tax profits more than doubled to €1.95 million, marking a 138.5% increase from the previous year.
Despite the impressive profit figures, the revenue growth for 2022 did not match the remarkable 64% surge seen during the height of the pandemic in 2021. Revenues increased by 11% from €43.2 million to €47.89 million.
Directors at Deliveroo Ireland attributed the revenue increase in 2022 to “increased demand, the change in ordering behavior, and sales mix.” They also noted that the company’s gross profits rose from €14.74 million to €17.96 million, reflecting both increased demand and the scalable economics of their business model.
Looking ahead, the company’s directors outlined their focus for the coming financial year, stating that it would be centered on “improving our customer proposition pillars – service and selection – in order to further drive growth.”
Deliveroo Ireland also reported an 11% increase in operating profit, from €1.12 million to €1.245 million.
One significant factor contributing to the notable increase in pre-tax profits was a €710,766 foreign exchange gain, compared to a €303,460 foreign exchange loss in 2021.
The number of employees directly employed by Deliveroo Ireland increased from 10 to 56, with staff costs rising nearly fourfold from €697,688 to €2.65 million. This increase included a share-based payment charge of €45,686. Non-cash depreciation costs for the company amounted to €91,891.
Deliveroo Ireland’s cost of sales reached €29.92 million, with other operating expenses totaling €10.86 million and administrative expenses amounting to €5.86 million. After paying corporation tax of €259,713, the company recorded post-tax profits of €1.695 million.
As of December, the firm had accumulated profits totaling €5.6 million, and its cash reserves increased from €21.43 million to €26.98 million.
Deliveroo, headquartered in the UK, operates globally in ten markets and has a workforce of over 150,000 self-employed couriers, often referred to as ‘riders.’ In the first half of this year, Deliveroo plc reported a 5% increase in global revenues to £1.02 billion, generated from 145.2 million orders. However, the business also posted a pre-tax loss of £57.6 million for the same period.