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Deliveroo PLC on Thursday said gross transaction value for UK orders rose 9% in its latest quarter, with revenue increasing despite a ‘tough consumer backdrop’.
The London-based delivery services firm said its total gross transaction value increased 3.5% in the third quarter of 2023 to £1.70 billion from £1.64 billion.
Orders decreased 0.6% to £69.7 million from £70.1 million, but GTV per order increased 3.8% to £24.3 from £23.4 despite moderating food price inflation. Total group revenue meanwhile increased 1.2% to £487 million from £481 million.
Deliveroo said its GTV for the UK & Ireland increased 8.7% to £1.03 billion from £944 million. Revenue increased 7.2% to 297 million from 277 million.
Internationally, however, GTV decreased 3.6% to £671 million from £696 million, while revenue decreased 6.9% to £190 million from £204 million. However, Chief Executive Officer Will Shu said he was ‘encouraged by the improving trends’ in key markets.
‘I’m really pleased with our results and proud of the team’s execution, especially the continued progress on service towards a seamless delivery experience,’ Shu added. ‘We’ve also made clear progress in promoting value within the app, which remains so important given the tough consumer backdrop.’
Deliveroo reaffirmed its guidance for 2023, expecting lower single digit percentage growth in GTV, at least in constant currency. It also anticipates adjusted earnings before interest, tax, depreciation and amortisation between £60 million and £80 million.
‘My confidence in our ability to drive growth and deliver on our goals for profitability and sustainable cash flow generation has never been stronger,’ Shu commented.
Deliveroo shares were down 1.7% at 120.30 pence in London on Thursday morning.
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