Takeaway giant Deliveroo saw orders rebound in the first quarter thanks to strong overseas growth.
The London-based food delivery company’s online purchases increased by 2 per cent year-on-year to 73.5 million in the first three months of 2024.
UK and Ireland orders flatlined at 39.7 million amid continued cost-of-living pressures, but rose by 4 per cent to 33.7 million throughout the rest of the world.
Growth: Food delivery giant Deliveroo revealed its online purchases increased by 2 per cent year-on-year to 73.5 million in the first three months of 2024
Deliveroo’s gross transaction value – the total worth of orders processed on its platform – expanded by 6 per cent at constant currency levels to £1.83billion.
Internationally, GTV growth was driven by solid performances in France, Italy, Hong Kong, and the United Arab Emirates.
Deliveroo has upheld its guidance for GTV to rise by 5 to 9 per cent this year, while adjusted earnings before nasties are forecast to come in at £110million to £130million.
Will Shu, founder and chief executive of Deliveroo, said the consumer backdrop in the UK and Ireland ‘remains stable but uncertain’, but the company’s ‘commitment to offering fair prices and a flawless consumer experience is building strong foundations for the future’.
Deliveroo shares were 4.7 per cent higher at 126.9p on Thursday morning, but they remain nearly two-thirds below their initial public offering price of 390p.
The group was listed on the London Stock Exchange in March 2021 amid a surge in trade caused by the enforced closure of hospitality venues, which encouraged far more people to order meals online.
Yet Deliveroo has struggled to become profitable, partly because it has built up enormous marketing, technology and staff costs while going for breakneck growth.
Deliveroo’s sales have slowed as people have returned to eating out more regularly at pubs and restaurants.
Deliveroo’s results come a day after Just Eat Takeaway said its orders declined by 5 per cent during the first quarter following weaker trade in North America, where it operates Grubhub.
Earlier in the week, Just Eat announced it would exit New Zealand due to the country representing a small share of its overall business.
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