Deliveroo achieved “robust” growth in its final quarter, with gross transaction value (GTV) on the delivery platform up 7% to £1.97bn, driven by its loyalty programme and strong progress in the grocery market.
Orders over the period to 31 December increased 3%, while GTV per order was up 4% in constant currency terms.
In the UK & Ireland, Deliveroo saw GTV rise 9% to £1.20bn, with order growth accelerating to 5%. The group noted that further execution of its initiatives helped drive improvements to frequency and retention despite “continued uncertainty in the consumer environment”.
In its international unit, GTV rose 5% to £771m after orders were flat, but GTV per order increased by 5%. Deliveroo said it performed well in UAE and Italy, while there was a slight improvement in France despite ongoing market softness. Meanwhile, Hong Kong continued to be impacted by the competitive environment.
The strong end to 2024 meant Deliveroo’s annual GTV was in line with guidance, growing 6% to £7.43bn.
The British company said its adjusted core earnings (EBITDA) were expected to be towards the top end of its £110-130m range, adding that it would be free cash flow positive for the year.
“I’m proud of our progress in 2024 as we continued to strengthen our consumer value proposition,” said Founder and CEO, Will Shu.
“We enhanced our loyalty programmes, delivered strong growth in grocery and secured new partnerships to expand our retail selection, enabling us to bring even more of the neighbourhood to consumers’ doors.
“Our continued execution has driven improved frequency and retention in Q4, with order growth improving throughout the year in UKI. Our execution has also continued to deliver profitable growth, with EBITDA expected to be towards the top end of our guided range. We see many exciting opportunities ahead with significant growth potential for Deliveroo.”
Last year, Deliveroo expanded its offering through tie-ups with The Perfume Shop, Wilko, Iceland, and Morrisons Daily.
NAM Implications:
- Deliveroo’s steady growth in GTV, coupled with the addition of new contracts, means the company is increasing coverage…
- …which in a home delivery model means increased profitability.
- Just needs time…
