Deliveroo annual earnings to slightly ahead of guidance

19th Jan 2024 07:16

(Sharecast News) - Takeaway delivery company Deliveroo said annual earnings would be "slightly" ahead of guidance, with gross transaction value (GTV) up 7% year on year in the UK and Ireland, despite the cost-of-living crisis.

Adjusted core earnings were previously guided to be in a range of £60 - 80m. Total GTV, a key metric of total order sizes, rose 3%, in line with forecasts, to £7bn as customers continued to order in meals.

Fourth quarter UKI GTV fell compared with the previous three months, impacted by factors including the active management of certain restaurant partners to build consumer trust through lower mark-ups and stronger operational performance.

International GTV returned to growth of 1% year on year in the final three months of 2023, with improving trends in most markets and continued strength in Italy and UAE, Deliveroo said in a trading update.

"As we saw ongoing signs of stabilisation in consumer behaviour in the quarter, we continued to invest in the consumer value proposition to lay the foundations for future growth," said founder and chief executive Will Shu.

Reporting by Frank Prenesti for Sharecast.com