The London-based delivery service company said revenue rose 6.8% to GBP512 million in the first quarter of 2023, from GBP479 million a year earlier based on reported currency, or 4% based on constant currency.
Deliveroo PLC said on Thursday that first-quarter sales were up, particularly in the UK and Ireland, while the international division’s results were down at constant currency.
This was most evident in the UK & Ireland division, where revenues increased by 12% and 11% respectively on a reporting and constant currency basis to GBP299 million from GBP268 million. Further, international revenues increased by 0.9% to GBP213 million (GBP211 million), although they fell by 5% at constant currencies.
Across the group,gross transaction value rose 2.3% from GBP1.71 billion to GBP1. 75 billion at reported currencies,but fell 1% at constant currencies.
Orders fell 8.5% from 78.8 million to 72.1 million, while gross profit per order increased 12% from £ 21.70 to £ 24.20, or 8% at constant currency. Deliveroo said this reflects the ongoing effect of food price inflation.
“The revenue growth of 4% and a largely flat GTV (both in constant currency) is a resilient performance, especially in the context of inflationary pressures and the ongoing cost of living crisis and against a challenging comparative basis. Against this backdrop, I am particularly pleased with our performance at UKI, which reflects a further improvement in our consumer offering,” said founder and Chief Executive Officer Will Shu.
Looking ahead, Deliveroo says it expects the percentage growth of the GTV to be in the low to medium range, at constant currency, with growth improving over the year as “we continue to implement our plans and relax the comparison base”.
The company also expects adjusted earnings before interest, tax, depreciation and amortization to be between GBP20 million and GBP50 million in 2023, weighted for the second half. This would represent a turnaround from a loss of GBP70.5 million in 2022.
Shu continues: “we remain confident in our ability to deliver on our plans for profitable growth and sustainable cash flow generation.”
Shares of Deliveroo fell 0.7% in London on Thursday morning to 103.00 pence apiece.
