Deliveroo Plc said orders were back on target for growth with a 2% increase in the primary quarter, driven by “strong progress” within the food delivery company’s international segment. Shares rose as much as 7.7% in early London trading.
Users placed 73.5 million orders in the primary quarter, up from 72.1 million in the identical period last 12 months, based on an announcement Thursday. Gross transaction value increased 6% on a continuing currency basis to 1.8 billion kilos ($2.3 billion).
“We made particularly strong progress in international markets during the quarter, with notable improvements in France, the United Arab Emirates and Hong Kong and continued strength in Italy,” Chief Executive Officer Will Shu said within the statement.
While orders in its international division rose 4%, Deliveroo saw flat order growth within the UK and Ireland resulting from a “more stable but still uncertain consumer environment” within the region.
The London-based company kept its forecast for next 12 months unchanged. The company expects earnings before interest, tax, depreciation and amortization to be between 110 and 130 million kilos in 2024 and expects gross transaction value to extend by 5 to 9 percent on a continuing exchange rate basis, in comparison with one Increase of three percent in 2023.
Rival Just Eat Takeaway.com NV said orders yesterday slipped in the primary quarter, indicating continued weak demand for takeaways after the boom through the pandemic. Since the top of lockdowns, Deliveroo and its competitors have been specializing in cutting costs and exiting non-core markets to spice up profitability.
