Food delivery giant Deliveroo (LSE: ROO) revealed a robust performance as it announced a 9% rise in gross transaction value (GTV) for UK orders in the third quarter of 2023. The company’s strategic approach and dedication to enhancing customer experience are evident in its financial results.
During this period, Deliveroo reported a 3.5% increase in total GTV, reaching £1.70 billion compared to £1.64 billion in the previous quarter. Although the number of orders experienced a marginal dip of 0.6%, the GTV per order saw a significant uptick of 3.8%, amounting to £24.3 from £23.4, despite the challenges posed by moderating food price inflation.
The UK and Ireland emerged as strongholds for Deliveroo, with an impressive 8.7% increase in GTV, totalling £1.03 billion compared to £944 million previously. The revenue also climbed by 7.2% to £297 million from £277 million. In contrast, international markets faced a 3.6% dip in GTV, dropping to £671 million from £696 million, and a 6.9% decrease in revenue, falling to £190 million from £204 million. However, CEO Will Shu expressed optimism, noting, “I’m encouraged by the improving trends in key markets.”
Shu highlighted the company’s commitment to enhancing user experience and promoting value within the app. “We’ve also made clear progress in promoting value within the app, which remains so important given the tough consumer backdrop,” he stated.
Despite the challenges, Deliveroo reaffirmed its 2023 guidance, expecting a lower single-digit percentage growth in GTV, particularly in constant currency. Additionally, the company anticipates adjusted earnings before interest, tax, depreciation, and amortisation between £60 million and £80 million. Shu expressed his confidence in the company’s future, stating, “My confidence in our ability to drive growth and deliver on our goals for profitability and sustainable cash flow generation has never been stronger.”
In the stock market, Deliveroo shares saw a minor decline of 1.7%, reaching 120.30 pence in London on Thursday morning.
