Rapid delivery firm Deliveroo has upped its profit guidance slightly following gross transaction value (GTV) continued to grow in Q4 – up 4% year-on-year (YoY).
Deliveroo has adjusted its EBITDA to be above the £60-80mn guidance range, with UKI GTV growth of 7% YoY.
The delivery firm, which works with 183,000 restaurants and grocery partners, described its growth as “steady”. It explained its partners have built consumer trust through lower mark-ups and stronger operational performance.
Additionally, international GTV returned to growth of 1% YoY, with improving trends in most markets and continued strength in Italy and UAE.
Will Shu, founder and CEO of Deliveroo, said: “I’m really proud of the team’s execution in Q4, including launching our retail offering. We delivered a good performance in UKI and saw International return to GTV growth, with encouraging trends in several markets.
“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. We closed out a successful 2023 with GTV in line with guidance and adjusted EBITDA slightly above the top end of our guidance range.”
The results statement from Deliveroo credited targeted investment in consumer fees for group revenue growth of 1%, and said it had capitalises on ongoing signs of stabilisation in consumer behaviour. Management will provide 2024 guidance at Deliveroo’s full year results on 14 March 2024.
Commenting on these latest results, Russell Pointon, director of consumer at Edison Group, notes: “Deliveroo’s Q4 trading update reveals a solid performance for the quarter and overall FY23 amid challenging conditions for the consumer, with profit expected to be slightly above expectations on revenue that is in line.
“While GTV growth is promising, the impact of moderating food inflation on the quarter’s profit remains a point of interest. Additionally, the full impact of Deliveroo’s newly launched non-food retail offering, which was launched this quarter to help drive growth and diversify the company’s services, will become an increasing focus.
“Attention now turns to Deliveroo’s finalised full-year results, scheduled for release in March, where the market will seek guidance for 2024 and insights into anticipated trends.”
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