Published on 13 Apr 2023 on Simply Wall St. via Yahoo Finance

Loss-Making Deliveroo plc (LON:ROO) Expected To Breakeven In The Medium-Term

We feel now is a pretty good time to analyse Deliveroo plc's (LON:ROO) business as it appears the company may be on the cusp of a considerable accomplishment. Deliveroo plc operates an online food delivery platform. The UK£1.7b market-cap company announced a latest loss of UK£243m on 31 December 2022 for its most recent financial year result. Many investors are wondering about the rate at which Deliveroo will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

See our latest analysis for Deliveroo

Deliveroo is bordering on breakeven, according to the 13 British Hospitality analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of UK£10m in 2025. Therefore, the company is expected to breakeven roughly 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 68%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.