11th Aug 2021 10:48
(Alliance News) - Deliveroo PLC on Wednesday said orders doubled in the first half of the year as customer demand for ordering food at home endures despite restrictions easing and restaurants reopening.
Orders for the six months ended June 30 totalled 148.8 million, double the 74.5 million made a year before. Revenue saw a similarly strong improvement, up 82% to GBP922.5 million from GBP507.4 million a year prior.
The food delivery business said first-half growth was "materially ahead of expectations" and that encouraging consumer demand, despite restrictions easing, demonstrated a "continuation of the change in consumer habits that has been accelerated during the pandemic".
Pretax loss for the period narrowed to GBP104.8 million compared to GBP128.4 million a year previously.
During the period, Deliveroo said gross transaction value was up 99% at GBP3.39 billion from GBP1.70 billion. GTV is defined by the company as the total value paid by consumers, excluding any discretionary tips.
Shares in Deliveroo were down 4.0% in London on Wednesday morning at 348.45 pence, and remain 11% lower than its March IPO price of 390p.
An interim dividend was not proposed, in line with the year before.
"We are seeing strong growth and engagement across our marketplace as lockdowns continue to ease. Demand has been high amongst consumers. We have widened our consumer base, seen people continuing to order frequently and we now work with more food merchants than any other platform in the UK. At the same time, more riders are choosing to continue to work with the company because they value the work we offer," said Chief Executive & founder Will Shu.
"As reflected in our guidance, whilst we expect that consumer behaviour may moderate later in the year, we remain excited about the opportunity ahead and our ability to capitalise on it," Shu added.
Looking ahead, Deliveroo reiterated its recently upgraded annual GTV growth guidance, seen in a range of 50% to 60% for 2021.
By Will Paige; [email protected]
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