Deliveroo Q3 GTV Rises, Updates FY22 View; Confirms Scilla Grimble To Join As CFO In Feb.; Stock Up

(RTTNews) - Shares of Deliveroo Plc (ROO.L, DROOF) were gaining around 3 percent in the early morning trading in London after the online food delivery company reported Friday that its third-quarter gross transaction value or GTV increased 8 percent to 1.70 billion pounds from last year's 1.57 billion pounds. GTV grew 5 percent year-on-year in constant currency.

Separately, Deliveroo confirmed that Chief Financial Officer designate Scilla Grimble will join the Board as CFO with effect from February 20, 2023.

David Hancock who is currently serving as Interim Chief Financial Officer since September 17 will step down from the position with effect from the same date.

In its trading update, the company said orders were down 1 percent to 72.8 million from 73.6 million last year, reflecting the difficult consumer environment. GTV per order was up 9 percent on a reported basis and 6 percent at constant currency to 23.4 pounds.

Further, the company updated its fiscal 2022 guidance based on GTV developments during the quarter and the current economic outlook.

For the year, GTV growth is now expected to be in the range of 4-8 percent in constant currency, the lower half of the previously- announced range of 4 percent to 12 percent.

Adjusted EBITDA margin, as a percentage of GTV, is now expected to be in the range of minus 1.2 percent to minus 1.5 percent, compared to previously expected minus 1.5 percent to minus 1.8 percent, due to continued gross profit margin expansion and control of marketing and overheads costs.

Will Shu, Founder and CEO of Deliveroo, said, "Since June, the year-on-year GTV growth trend has been broadly stable, despite the ongoing economic uncertainty. Throughout 2022 we have been adapting financially to the operating environment and driving forward on our path to profitability, and we now expect the H2 2022 adjusted EBITDA margin to be better than our previous guidance."

In London, Deliveroo shares were trading at 84.50 pence, up 3.10 percent.