Deliveroo’s CEO, Will Shu, has sold £15 million worth of shares after the company recorded its first profit since going public.
- Shu sold 9.4 million shares between September 12 and 16, valued at £14.8 million, to invest in personal property.
- Despite the sale, Shu maintains 95.8 million shares and does not participate in the company’s bonus schemes.
- Deliveroo announced a £150 million share buyback and has seen a 30% rise in share price over the last year.
- The company’s strategic expansions and financial results keep investors optimistic about its future trajectory.
In a significant financial maneuver, Deliveroo’s CEO, Will Shu, sold 9.4 million shares between September 12 and September 16, valued at £14.8 million. This transaction was undertaken to support personal property investments. Despite this sizable divestment, Shu remains a substantial stakeholder, retaining 95.8 million shares. Notably, Shu refrains from engaging in Deliveroo’s annual bonuses or long-term share award schemes, underscoring a distinct separation between his personal financial strategies and corporate incentives.
Deliveroo’s recent financial achievements have marked a pivotal turnaround for the company. For the first time since its initial public offering, Deliveroo posted a profit—a landmark event following a challenging public debut in April 2021 which saw its share price plummet by 30% on its opening day due to concerns over its business model and the legal classification of its delivery riders. The announcement of a £150 million share buyback initiative, coupled with a 30% increase in share value over the past year, reflects growing confidence among investors.
The company’s first-half financial results for 2024 have proven favorable. Deliveroo reported a profit of £1.3 million in contrast to an £82.9 million loss recorded during the same period in the previous year. An uptick in order volume by 2%—totaling 147 million—and a 5% surge in gross transaction value to £3.69 billion were facilitated by easing food prices and a stabilizing cost of living, both contributing to heightened consumer demand.
Founded in 2013 by Will Shu, a former banker, Deliveroo has evolved from a singular food delivery service into a multifaceted operation spanning ten markets with approximately 140,000 riders and partnerships with 180,000 restaurants. However, the company has not been without its challenges. The COVID-19 pandemic initially bolstered business as hospitality venues shut down, but subsequent economic conditions, including a cost of living crisis, impacted order frequency. In an effort to diversify and sustain growth, Deliveroo expanded into non-food deliveries, recently partnering with B&Q to deliver home improvement items swiftly within London.
Despite Shu’s recent share sale, Deliveroo’s stock prices remained resilient, ending slightly up by 0.25% at 157¼p. This stability suggests that the market retains confidence in Deliveroo’s strategic vision and operational capabilities. As Deliveroo adheres to its growth trajectory, stakeholders will be vigilant in monitoring its ability to maintain profitability amidst a dynamic and competitive market landscape.
Deliveroo’s financial strategy and market adaptability reinforce investor confidence as it navigates a competitive industry.
