Deliveroo Plc said orders returned to growth with a 2% increase in the first quarter, driven by “strong progress” in the food delivery company’s international segment. Shares rose as much as 7.7% in early London trading.
Users placed 73.5 million orders in the first quarter, up from 72.1 million in the same period last year, according to a statement on Thursday. Gross transaction value increased 6% on a constant currency basis to £1.8 billion ($2.3 billion).
“We made particularly strong progress international markets during the quarter, with notable improvements in France, United Arab Emirates and Hong Kong, and continued strength in Italy,” Chief Executive Officer Will Shu said in the statement.
While orders were up 4% in the international division, Deliveroo reported flat order growth in the UK and Ireland due to a “more stable but still uncertain consumer environment” in the region.
The London-based company kept its guidance for the year ahead unchanged. It expects earnings before interest, taxes, depreciation, and amortization between £110 million and £130 million in 2024 and anticipates gross transaction value to increase by 5% to 9% on a constant currency basis, compared with a 3% increase in 2023.
Rival Just Eat Takeaway.com NV said yesterday orders slipped in the first quarter, signaling continued weak demand for takeouts after the boom experienced during the pandemic. Since lockdowns ended, Deliveroo and its peers have focused on cutting costs and exiting non-core markets to boost profitability.