Deliveroo Q1 revenues rise 4% despite fall in orders

Deliveroo has recently reported a 4% rise in revenue in its Q1 trading update, although the group saw the number of orders decline by 9%. 

Gross transaction value was also 1% lower in the period, which the food delivery company attributes to the continued impact of food price inflation. 

The group was “particularly pleased” with its performance in the UKI market however, as UKI revenues and GTV were up by 11% and 6% respectively. 

Nonetheless, international revenues and GTV were down 5% and 9% in constant currency. The company believes the year-on-year decline was driven by more stringent Covid-related restrictions in Asian markets in early 2022, which made for a tougher comparison base, and continued market-wide weakness in France.

Looking ahead, adjusted earnings for FY23 are expected to be in the range of £20m-£50m, weighted towards the second half of the year. 

Will Shu, founder and CEO of Deliveroo, said: “Revenue growth of 4% and broadly flat GTV represents a resilient performance, particularly in the context of inflationary pressures and the ongoing cost of living crisis and against a challenging comparison base. 

“Against this backdrop, I’m particularly pleased with our performance in UKI, reflecting a further improvement in our offering to consumers. We remain confident in our ability to deliver on our plans to drive profitable growth and sustainable cash generation.”