Deliveroo Holdings plc (LON: ROO) said on Thursday its orders more than doubled in the first quarter as the Coronavirus pandemic continued to restrict people to their homes, fuelling demand for food delivery services. The COVID-19 crisis has so far infected more than 4.3 million people in the United Kingdom and caused over 127 thousand deaths.
Deliveroo debuted on the London Stock Exchange on 31st March at a per-share price of £2.87. The stock opened at £2.72 per share on Thursday and is currently exchanging hands at £2.65 per share. Earlier this week on Monday, Deliveroo had slid to a year-to-date low of £2.51 per share. Here’s what you need to know about the different types of stock investments.
Deliveroo handled £1.65 billion worth of transactions in Q1
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Deliveroo received 71 million orders in the first three months – a 114% increase from the same period last year. The online food delivery company handled £1.65 billion worth of transactions in Q1, representing an annualised increase of 130%.
Despite hawkish performance in the first quarter, Deliveroo acknowledged that order numbers were likely to tank in the upcoming weeks as restaurant and bars reopened for the public on Monday. The London-listed company’s report on Thursday marked its debut quarterly results after its initial public offering (IPO) in March that valued it at around £7.6 billion.
CEO Will Shu commented on the financial update on Thursday and said:
“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.”
Excluding costs related to expansion and IT investment, Shu expects an up to 8% gross profit margin this year. In the first quarter, as per Deliveroo, its monthly active users jumped to 7.1 million versus the year-ago figure of only 3.7 million.
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About 50% of all transactions were attributed to international cities
According to Deliveroo, growth in the United Kingdom and Ireland was the fastest in Q1, but roughly 50% of all transactions were attributed to international cities, such as Hong Kong, Sydney, Berlin, and Paris.
In separate news from the United Kingdom, Entain plc said its digital business showed resilience in the first quarter, but failed to completely offset a hit to its retail segment during the health emergency-driven lockdown.
At the time of writing, Deliveroo Holdings plc has a market cap of £4.85 billion.