Deliveroo shares tick up after growth beats market expectations
Shares in food delivery firm Deliveroo rose by more than two per cent this morning after the company announced strong quarterly growth.
Growth transaction value (GTV) – a measure of revenue – rose by nine per cent year-on-year in the first quarter, with order growth up seven per cent.
International GTV also rose nine per cent year-on-year, with order growth up seven per cent, while revenue grew by eight per cent year-on-year, to £518m.
The company maintained its full-year guidance despite macroeconomic issues and uncertainty, with adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) expected to be in the range of £170-£190m.
“We made good strides in both UK&I and International and this improvement is a reflection of our relentless focus on enhancing our customer value proposition (CVP),” Will Shu, founder and CEO of Deliveroo, said.
“Our CVP investments to date are proving successful, as demonstrated by the accelerating growth in order volumes and our monthly active consumers.
“We continue to have confidence in delivering our guidance for 2025 whilst, like many others, remaining mindful of the uncertain macroeconomic environment,” Shu said.
Panmure Liberum analysts rated the stock a ‘buy’ with a target price of 200p (it was trading at 133p on Thursday morning).
“The notable part of this trading update is the strength of the UK and Ireland business, where year-on-year customer growth has continued for a second consecutive quarter – having been in decline from 2022 through 2024,” analysts said.
However, they noted that short-term concerns about potential competition in the Middle East are “unlikely to abate”, with expansion of brands like Keeta across the Middle East and North Africa.