Deliveroo reveals bumper sales ahead of expectations

Deliveroo has revealed bumper sales in the past three months, which are set to be higher than first thought.

The company said the gross transaction value – the amount spent by customers – hit £3.4 billion in the first six months of the year, up 99% on the same period a year ago.

Deliveroo sales in the UK and Ireland were particularly strong – up 87% in the three months to June, hitting £921 million, compared with 65% growth in the rest of the world of £818 million.

The company said is has “seen continued strong growth and consumer engagement”, leading to an increase in guidance for the full year with around 15% growth in the second half.

Bosses did not provide any details on why they believe sales will be ahead of expectations, although food delivery platforms have enjoyed strong growth due to Covid-19 lockdown restrictions.

As a result, Deliveroo said it sees “an opportunity to make further discretionary investments into growth opportunities” and expects average order volumes to hit pre-Covid levels later this year.

The update is the second from the London-based company since it listed on the Stock Exchange in March, in one of the most widely-panned flotations in recent years.

Shares started trading at 390p but quickly sank by 30%, with investors considering it overvalued.

It had been the biggest listing of 2021, although it was overtaken by payment processing business Wise, which launched on the stock market on Wednesday, valued at nearly £8 billion.