Deliveroo PLC (LSE:ROO) is expected to reiterate its 2023 guidance during a meeting with investors today, while boss Will Shu is taking a gamble on homeware to drive future growth.
In a statement released ahead of its Capital Markets Day (CMD) event this afternoon, the delivery company updated its medium-term gross transaction value (GTV) growth target, as a percentage per annum, to the mid-teens.
“Looking ahead, we are updating our medium-term GTV growth target to mid-teens percentage growth per annum and we remain on track to deliver our 4%+ adjusted EBITDA margin target by 2026,” said Shu, founder and chief executive of Deliveroo.
“These ambitions reflect our commitment to driving sustainable growth and creating long-term value for our stakeholders."
Future growth will be driven by an expansion of the Deliveroo platform to “encompass retail, such as DIY, homeware and electrical goods”, according to Deliveroo's CEO, who said there continues to be “significant headroom for growth”.
The food delivery company’s prior guidance for the full year includes GTV percentage growth, at constant currency, in the lower single digits.
That guidance was reinforced today, as the company said management was reiterating its expectations for this financial year, including forecasts that underlying profit (adjusted EBITDA) will be between £60 million and £80 million this year.
Deliveroo said it aims to reach an adjusted EBITDA margin of 4% or more, as a percentage of GTV, by 2026, indicating “further upside potential beyond 2026”.
“This enhancement of our offering will leverage our existing capabilities to bring more of the neighbourhood to consumers’ doors,” Shu said.
It has been 11 years since Deliveroo was founded and nearly three years since its listing via an initial public offering (IPO).
Deliveroo's CMD event is due to take place at 1.00 pm today in London.
Deliveroo’s share price rose 1.51% to 147.5p.