More resilient consumer spending helped food delivery giant Deliveroo record a strong first half and upgrade its earnings forecasts for the full year.
At 177p per share, Deliveroo’s share price was unchanged on the news.
The food delivery giant – which in May agreed to a $3.9 billion takeover by US rival DoorDash – said that revenues rose 8% between January and June, to £1 billion. At constant currencies growth was slightly higher at 9%.
Gross transaction value (GTV), meanwhile, was up 9% at both reported and constant currencies, at £3.8 billion. This metric reflects the total amount customers pay, and is inclusive of food costs, delivery charges and taxes.
Deliveroo said first-half takings were “driven by further execution on our growth initiatives and a more resilient than expected consumer.”
Order numbers improved 8% year on year to 147 million. GTV per order rose 1% at reported currencies and 2% at stable exchange rates, to £25.80.
Adjusted EBITDA increased 46% over the period to 46%. However, the firm swung to a loss of £19.2 million from a profit of £1.3 million in the same 2024 period.
It said this swing primarily reflected “higher exceptional items relating to costs associated with the DoorDash acquisition.”
Growth Accelerates
Deliveroo said its first-half numbers were “driven by further execution on our growth initiatives and a more resilient than expected consumer.”
The business said that growth in order numbers accelerated to 8% in quarter two from 7% in the prior three months.
GTV growth at constant currencies came in at 10% in the last quarter versus 9% in quarter one. Revenue rose to 9% from 8% on the same basis.
Deliveroo said it now expects full-year GTV growth at constant currencies “around the top end of the previously-guided range of high single-digits percentage growth.”
Adjusted EBITDA, meanwhile, is expected to be “in the upper half of the previously-guided range of £170-190 million.”
This boost to forecasts reflects the company’s strong first half, it said, along with the weighting of earlier investments during the second half.
“Highly Encouraging”
Deliveroo founder and chief executive Will Shu commented that described the first-half performance as “highly encouraging.”
He commented that “consumer engagement is encouraging, with order frequency and retention continuing to improve across all cohorts.”
Shu added that “both growth and profitability are accelerating [and] we are delivering on our mission to change the way people shop and eat and to bring the neighborhood to people’s doors.”
Deliveroo said its acquisition by DoorDash is proceeding as predicted. It expects the deal to close out in the fourth quarter pending regulatory approval.
Food Delivery “Here To Stay”
Analyst Adam Vettese of eToro noted that “Deliveroo is showing once again that online food delivery is here to stay,” and added that “its latest update demonstrates a decisive step forward both operationally and strategically.”
He noted that international markets like the United Arab Emirates (UAE) and Italy are “thriving,” complementing growth at its core UK and Ireland territory.
Vettese added that “there is little movement in shares this morning due to the ongoing acquisition by DoorDash but overall Deliveroo will be a robust addition to the group if it carries on this trajectory.”