Deliveroo slashes revenue outlook as UK economy deteriorates

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LONDON, July 18 (Reuters) – British food delivery company Deliveroo (ROO.L) cut its full-year revenue forecast on Monday, blaming a deteriorating economic outlook as pressures on consumers mount.

The group said its full-year gross transaction value (GTV) growth is now expected to be between 4% and 12% in constant currency compared to previous guidance of 15% to 25%.

Deliveroo said GTV growth in the second quarter slowed to 2% from 12% in the first quarter.

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He said this reflected “the impact of increased consumer headwinds” in the second quarter.

British consumer confidence levels hit a record high last month as they battle the accelerating cost of living. Wages are failing to keep pace with inflation which hit a 40-year high of 9.1% in May and is heading into the double digits.

Deliveroo said second-quarter order growth was 3% year-on-year, while GTV per order was down slightly year-on-year as basket sizes were higher during COVID shutdowns. -19 for part of the same quarter last year.

The group maintained its margin targets for the year.

It continues to expect the 2022 adjusted earnings before interest, tax, depreciation and amortization (EBITDA) margin to decline to 1.5% to 1.8% from a 2.0% decline in 2021.

“Management is confident in the company’s ability to adapt financially to a rapidly changing macroeconomic environment, through gross margin improvements, more effective marketing spend and tight cost control,” it said. -he declares.

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Reporting by James Davey; Editing by Kate Holton and Edmund Blair

Our standards: The Thomson Reuters Trust Principles.

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