Deliveroo delivers sales rise on ‘strong’ UK performance
The group posted a 5% constant currency rise in sales by gross transaction value over the third quarter, helping revenues rise 3%.
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Your support makes all the difference.Food delivery giant Deliveroo has notched up rising sales thanks to a strong performance in the UK and Ireland and as it begins to see a recovery in order numbers.
The London-listed multinational business posted a 5% constant currency rise in sales by gross transaction value (GTV) across the group in the third quarter, helping revenues rise 3% to £487 million.
It cheered a “strong performance” in the UK and Ireland, where GTV jumped 9%.
Orders by number across the group remained under pressure, falling 1% to 69.7 million, but the performance marked an improvement on the 6% fall seen at the half-year stage.
The group said price inflation is “moderating”, but still pushed GTV per order up 5% to £24.30 on a constant currency basis.
Deliveroo does not set menu prices for the restaurants on its platform, but it does set delivery fees based on how long or difficult the journey will be for the rider.
We continue to deliver strong performance in the UK and Ireland and I’m encouraged by the improving growth trends in key international markets
Founder and chief executive Will Shu said the group is making “clear progress in promoting value within the app, which remains so important given the tough consumer backdrop”.
“We continue to deliver strong performance in the UK and Ireland and I’m encouraged by the improving growth trends in key international markets,” he said.
Revenues in the UK and Ireland lifted 7% to £297 million and order numbers rose 3% as the company continues to benefit from recent efforts to improve service, such as minimising missing items and late orders.
It has also rolled out new features, such as “premium” delivery, where people can pay to have their order prioritised, and the option to top up a restaurant order with groceries. Some 8,000 grocery shops are listed on the platform.
But the group’s international division is seeing a slower recovery, with GTV down 1% and order numbers off 5%.
Order numbers have been falling as people cut back on non-essential spending amid rampant inflation.
Deliveroo has been rolling out more options for consumers and has cut costs, which is helping it become more profitable.
It raised its full-year earnings outlook in August to between £60 million and £80 million, and said in its latest update that it remains on track to meet the guidance.