17th Apr 2025 10:12
(Alliance News) - Deliveroo PLC on Thursday expressed confidence in the year ahead but said it remains "mindful of the uncertain macroeconomic environment", as it reported stronger order growth in the first quarter of the year.
The London-based online food delivery company said revenue in the first quarter grew 6.8% to GBP518 million from GBP485 million the previous year.
Aligning with this growth was an increase in orders, up 7.1% to 72.6 million from 67.8 million.
Deliveroo said its order growth accelerated from 6% in the fourth quarter of 2024 as a result of "ongoing strength in UAE and Italy", but noted that it was "offset partially by continued softness in France."
The firm's gross transaction value in the first quarter, meaning the total value of customer baskets including delivery fees, rose 8.3% to GBP1.87 billion from GBP1.73 billion the prior year.
Founder & Chief Executive Officer Will Shu described the results as a "strong start" to the year.
Monthly average users in the UK & Ireland rose 2.6% to 4.0 million from 3.9 million. However, compared to the fourth quarter, it was down 2.4% from 4.1 million, and the figure was unchanged from the same period two years prior.
Overall, Deliveroo reported a 4.5% increase in monthly average users in the first quarter to 7.0 million from 6.7 million the prior year.
Its shares were up 2.6% at 133.50 pence on Thursday morning in London.
Looking ahead, Deliveroo maintains its full-year guidance, expecting high single-digit percentage GTV growth at constant currency for 2025 and adjusted earnings before interest, tax, depreciation and amortisation between GBP170 million and GBP190 million.
Deliveroo reported adjusted Ebitda in 2024 of GBP129.6 million.
Shu continued: "We made good strides in both UKI and International and this improvement is a reflection of our relentless focus on enhancing our customer value proposition
"We continue to have confidence in delivering our guidance for 2025 whilst, like many others, remaining mindful of the uncertain macroeconomic environment."
By Olivia Mason-Myhill, Alliance News reporter
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