Tie-ups with retailers such as B&Q, Screwfix and Ann Summers have helped Deliveroo to raise its profit forecast, after the food delivery group recorded a strong uptick in orders.
The FTSE 250 firm, which debuted on the London Stock Exchange in 2021, told shareholders that adjusted underlying profit for the year to 31 December is likely to come in at the upper end of its £110 million to £130 million guidance.
Will Shu, Deliveroo’s founder and chief executive, said that “strong growth in groceries” and an expanding product range have enabled the business to “bring even more of the neighbourhood to consumers’ doors”. Over the past year, the company partnered with several well-known retail names including The Perfume Shop and Not On The High Street.
Deliveroo said its total number of orders increased by 3 per cent to 77.5 million during the final quarter of last year, with the UK and Ireland contributing 43.1 million of these orders—a 5 per cent jump on the same period in the previous year.
Overseas markets proved more mixed. While the UAE and Italy saw continued growth, France showed “some ongoing market softness” and Hong Kong remained “difficult” due to strong competition from Chinese rival Meituan, which entered the market in May 2023.
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