Meal delivery group Deliveroo maintained its full-year financial guidance as it reported a 5% rise in third-quarter gross transaction value, helped by an improving trend in customer orders.
The group, which has 183,000 restaurants and 20,000 grocery sites on its platform, said orders fell 1% in its third quarter, having been down 6% in the first half.
Deliveroo said while food price inflation was moderating, the growth in gross transaction value (GTV) was supported by "expanded selection, targeted promotions and service enhancements."
The group, which competes with Just Eat Takeaway.com and Uber Eats in markets in Europe, the Middle East and Asia, kept its guidance for full-year GTV growth in the low single digits, with adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of £60-£80 million ($73-$97 million).
Founder and CEO, Will Shu said, "We continue to deliver strong performance in UKI and I’m encouraged by the improving growth trends in key international markets.
"My confidence in our ability to drive growth and deliver on our goals for profitability and sustainable cash flow generation has never been stronger."
Shares in Deliveroo are up 43% so far this year.
Revenue increased by 3% in constant currency in the third quarter, to £487 million. However, it lagged GTV growth, with revenue take rate (% of GTV) down 60 bps year-on-year due to previously-flagged CVP investments.
In September, the food delivery firm proposed to return up to £250 million (€289.3 million) to shareholders with a tender offer, following consultations and considering the preferences expressed on potential distribution mechanisms.
News by Reuters, additional reporting by ESM.