Deliveroo ups guidance but flags margin squeeze

Deliveroo increased its full-year guidance after a strong second quarter but the food delivery group said extra investment would squeeze profit margins.

Gross transaction value rose 76% to £1.74bn in the three months to the end of June from a year earlier powered by its UK and Ireland business where GTV rose 87% to £921m.

Orders rose 88% to 78 million with orders in the UK and Ireland rising 95% to 38 million. International orders increased 83% to 40 million.

The company increased its guidance for annual GTV growth to 50-60% from 30-40%. Deliveroo said it would make more investments in growth opportunities and that its gross profit margin would be at the lower half of its announced range.

Deliveroo shares rose 2.9% to 329.88p at 08:18 BST.