British meal delivery company Deliveroo has reported a 4% rise in revenue in its first quarter.
Drop In Numbers And Lower GTV
Although a 9% drop in the number of orders on its platform resulted in 1% lower gross transaction value (GTV).
A "Resilient" Performance
Chief executive Will Shu said it was a "resilient performance", driven by the British and Irish markets, as the company maintained its guidance for the year for low to mid-single digit GTV growth and core earnings of 20-50 million pounds.
Just Eat Raises Guidance, But Order Appetite Shrinks
The above news follows news that Just Eat Takeaway.com NV raised its adjusted core profit outlook for this year, saying on Wednesday 19 April it was ahead of plan in delivery-led operational improvements, although food orders have fallen.
It also announced a shareback buyback programme of up to €150 million to be completed by the end of the year, which it said would improve earnings per share.
The food delivery sector was among those boosted by the COVID-19 pandemic, but the effect has waned as consumers, faced with surging prices, have cut discretionary spending.
Europe's biggest meal delivery company expects adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of €275 million in 2023. It had in January forecast adjusted EBITDA of €225 million.
At the same time, its first quarter trading update reported a drop in total orders to 227.8 million, 14% below last year's level.
Read More: Just Eat Raises Guidance, But Order Appetite Shrinks
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