Deliveroo Reports First-Half Profit and Positive Cash Flow

London, Aug 8 (Reuters) - British meal delivery company Deliveroo (ROO.L) said on Thursday it had achieved the twin milestones of profit and free cash flow generation in the first half of 2024.

The company posted a profit of 1 million pounds ($1.2 million) in the six months to June 30, rebounding from a loss of 83 million pounds in the same period last year.

Deliveroo's core earnings, which exclude share-based payments and other one-off items, came in at 85 million pounds, ahead of analysts' average forecast of 77 million pounds, according to Refinitiv data.

The company also generated positive free cash flow of 34 million pounds in the first half, compared with a negative free cash flow of 126 million pounds in the same period last year.

Deliveroo's shares rose 5% in early trading.

The company's results come as the meal delivery sector faces challenges due to rising costs and competition. However, Deliveroo said it was confident in its ability to continue to grow profitably.

"We are pleased to report another period of strong growth and profitability," said Deliveroo Chief Executive Will Shu.

"Our focus on operational efficiency and cost discipline has enabled us to deliver positive free cash flow for the first time, and we are confident that we can continue to grow profitably in the years to come."