Deliveroo posts positive quarterly growth

(Sharecast News) - Deliveroo has reported a positive first-quarter performance in an update on Thursday, as it returned to order growth, alongside a notable increase in gross transaction value (GTV). The company saw 6% year-on-year growth in GTV in constant currency, coupled with a 2% increase in orders compared to the prior year.

GTV per order meanwhile saw a 4% uptick in constant currency.

Deliveroo said its UK and Ireland (UKI) market continued to show resilience, with 6% year-on-year GTV growth, maintaining its momentum from the prior quarter.

Despite a flat performance in orders, the company said it was in line with overall market growth, navigating a stable yet uncertain consumer environment.

Internationally, Deliveroo saw GTV growth accelerate, reaching 6% year-on-year in constant currency.

That improvement was particularly notable in markets like France, the UAE and Hong Kong, while Italy maintained a strong performance.

Despite ongoing investments in consumer value proposition (CVP), Deliveroo said its revenue take rate remained stable sequentially.

The company reported 2% group revenue growth in constant currency, with a decrease in revenue take rate year-on-year but remaining flat compared to the previous quarter.

Deliveroo also announced the start of an EBT share purchase programme of up to £30m.

The firm maintained its guidance for the 2024 financial year, anticipating GTV growth in the range of 5% to 9% in constant currency, adjusted EBITDA in the range of £110m to £130m, and positive free cash flow for the full year.

"I am pleased with the start we have made to this year, building on the strong progress in 2023," said founder and chief executive officer Will Shu.

"The team has been relentlessly focussed on delivering service and value for money, helping drive a return to order growth and continued growth in GTV.

"We made particularly strong progress in International markets during the quarter, with notable improvements in France, UAE and Hong Kong, and continued strength in Italy."

Shu said that in the UK and Ireland the consumer environment remained stable but uncertain, but said the firm's commitment to offering fair prices and a "flawless" consumer experience was building strong foundations for the future and would continue to differentiate the business.

"I'm excited about building the best consumer experience possible and am confident in our ability to drive profitable growth and sustainable cash generation."

At 0900 BST, shares in Deliveroo were up 7.67% at 130.5p.

Reporting by Josh White for Sharecast.com.