Deliveroo (ROO ) said orders more than doubled during the first three months of 2021 as it saw record new consumer growth and sustained engagement from existing consumers.
The online food delivery group which listed on the LSE’s main market just over a week ago told investors that it has seen strong demand in both the UK&I and International markets.
It said growth has accelerated for the fourth consecutive quarter, with orders up 114% year-on-year to £71m and gross transaction value (GTV) up 130% year-on-year to £1.65bn.
The Company reported that its monthly active consumer base has grown by 91% year-on-year meaning there were 7.1 million monthly active consumers on average in 1Q21.
By period-end, Deliveroo reached over 60% of the UK population, adding over 6m people to its coverage. The Group said this increased coverage lays the foundation for future growth.
Despite its strong trading performance over the quarter, Deliveroo warned investors that the business continues to operate in an uncertain environment “given that the timing and impact of these restrictions being lifted in the coming weeks and months remain unknown.”
The online food delivery firm has seen the value of its shares decrease by around a third in a week as investor concerns arose over corporate governance and its treatment of workers.
Despite strong sales this quarter, the firm’s decision to take a cautious approach as it expects its rate of growth to decelerate saw the stock dip by 2.01% in value today to 264.6p.
While Deliveroo's 1Q21 growth across monthly active consumers, orders and GTV was ‘very strong’, the Group said it is difficult to say how much of this growth has been driven by the special circumstances of the current lockdown restrictions in some of its markets.
In fact, it told investors that it expects the rate of growth to decelerate as lockdowns ease but added that the extent of the deceleration remains uncertain. As a result, it remains prudent and has maintained the guidance set out in its prospectus for full year annual GTV growth of between 30% to 40% and gross profit margins (as a % of GTV) of 7.5-8.0%.
"We are delighted with the Deliveroo Q1 results. Demand has been strong in both the UK&I and International markets driven by record new consumer growth and sustained engagement from our existing consumerism,” said Will Shu, Deliveroo’s CEO and Founder.
He added that, “This is our fourth consecutive quarter of accelerating growth, but we are mindful of the uncertain impact of the lifting of COVID-19 restrictions. So, while we are confident that our value proposition will continue to attract consumers, restaurants, grocers and riders throughout 2021, we are taking a prudent approach to our full year guidance."
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