Deliveroo Holdings plc (LON: ROO) reported today that its orders more than doubled during the first quarter as a result of the covid-19 pandemic continuing to restrict people to their homes, increasing demand for food delivery services.
Deliveroo appeared on the London Stock Exchange on the 31st at £ 2.87 a share. The stock opened today at £ 2.72 a share and is currently trading at £ 2.65 a share. On Monday, Deliveroo fell to its lowest value yet at £ 2.51 a share.
Deliveroo handled £ 1.65 billion in transactions in the first quarter
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Deliveroo received 71 million orders in the first three months – a 114% increase over the same period last year. The food delivery company handled £ 1.65 billion in transactions in the first quarter, equivalent to an annual increase of 130%.
Despite the strong performance in the first quarter, Deliveroo acknowledged that order numbers are likely to decline in the coming weeks as restaurants and bars reopen to the public on Monday in the UK. Today’s London-listed company report was the company’s first quarterly report after its initial public offering in March, which valued the company at around £ 7.6 billion.
CEO Will Shaw commented on the financial update and said:
“Although we are convinced that our value proposition will continue to attract consumers, restaurants, grocery stores and drivers throughout 2021, we are taking a cautious approach to our full-year projections.”
Excluding costs related to expansions and IT investments, Shu expects gross margin to reach 8% this year. During the first quarter, the number of monthly active users increased to 7.1 million – compared to just 3.7 million last year.
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About 50% of all transactions take place in international cities
According to Deliveroo, growth in the UK and Ireland was the fastest in the first quarter, but around 50% of all transactions were attributed to international cities such as Hong Kong, Sydney, Berlin and Paris.
In a separate news from the UK Entain plc announced this The digital business showed resilience during the first quarter, but failed to fully compensate for the weak retail sector during the shutdown.
At the time of writing, Deliveroo Holdings plc has a market value of £ 4.85 billion.