Deliveroo Plc has announced a promising return to growth, marked by a 2% increase in orders in the first quarter, fueled by robust expansion in its international operations. Shares soared by up to 7.7% during early trading in London, reflecting investor confidence in the company’s performance.
In the first quarter, users placed 73.5 million orders, showing a rise from 72.1 million during the same period last year, as revealed in a statement on Thursday. Gross transaction value climbed by 6% on a constant currency basis, reaching £1.8 billion ($2.3 billion).
CEO Will Shu highlighted significant advancements in international markets, particularly in France, the United Arab Emirates, Hong Kong, and Italy, underscoring the company’s global growth trajectory.
While international orders witnessed a 4% uptick, Deliveroo experienced stagnant order growth in the UK and Ireland, attributed to a relatively stable yet uncertain consumer environment in the region.
Despite challenges, the London-based company has maintained its guidance for the upcoming year. It forecasts earnings before interest, taxes, depreciation, and amortization (EBITDA) to range between £110 million and £130 million in 2024. Moreover, it anticipates a 5% to 9% increase in gross transaction value on a constant currency basis, compared to a 3% rise in 2023.
In contrast, rival Just Eat Takeaway.com NV reported a decline in orders during the first quarter, signaling sustained weak demand for takeout services post-pandemic. Since the easing of lockdown restrictions, Deliveroo and its competitors have been strategically focusing on cost reduction and streamlining operations to enhance profitability.
