💼 Deliveroo’s First Profit
In the first half of 2024, Deliveroo made its first profit since going public. The company reported a profit of £1.3M, compared to an £82.9M loss the previous year. This achievement comes after a year where Deliveroo’s share price surged by nearly 30%, signaling growing confidence in the company’s turnaround strategy.
📊 Will Shu’s £15M Share Sale
From September 12 to 16, CEO Will Shu sold 9.4M shares for £15M. Shu, who founded Deliveroo in 2013, still holds 95.8M shares. He sold the shares to fund personal property investments. Interestingly, Shu does not participate in the company's annual bonuses or long-term share award schemes.
🏦 Deliveroo’s Financial Moves
Deliveroo’s financial health has improved, with a £150M share buyback announced alongside its first profit. The company's gross transaction value increased by 5% to £3.69B, while order volume grew by 2% to 147M. These gains were driven by stabilizing food prices and the easing cost of living pressures.
🏠 Expanding Beyond Food
Deliveroo is also diversifying, venturing into non-food products. Recently, the company partnered with B&Q to deliver home improvement items within 25 minutes in London. Despite Shu’s share sale, Deliveroo’s stock remained steady, reflecting investor confidence in its broader strategy and future growth.
Is Will Shu's share sale a smart move or a red flag?
