Deliveroo PLC (LON:ROO) upgraded full-year guidance after trading ahead of expectations in the second quarter.
Gross transaction values (GTV), or the amount of money that passes through the Deliveroo system, rose 76% year-on-year in the second quarter of 2021 to £1,739mln and was up 81% in constant currency.
GTV in the UK & Ireland was up 87% from a year earlier at £921mln.
The number of orders taken was 88% higher than a year ago at 78mln, with orders from the UK & Ireland up 94% at 38mln.
The controversial fast-food delivery group said it now expects GTV in 2021 to be up between 50% and 60% on 2020 having previously issued a guidance range of 30% - 40%.
However, full-year gross profit margin as a percentage of GTV is expected to be in the lower half of the group’s guidance range as Deliveroo said it expects order volume to revert towards pre-pandemic levels. The group, which floated in less than successful fashion in April said it sees an opportunity to make further discretionary investments into growth opportunities in the second half. As a result of accelerating these investments in the second half margins are also expected to take a knock.