British food delivery company Deliveroo on Monday cut its full-year revenue guidance, citing mainly a worsening economic outlook as pressures on consumption escalate.
The group stressed that growth in its gross transaction value (GTV) would, based on the updated forecast, be in the range of 4% to 12% at constant exchange rates, against a previous forecast of 15% to 25% growth.
Deliveroo notes that GTV growth in the second quarter slowed to 2%, compared to 12% in the first quarter.
The company notes that the decline reflects “the impact of headwinds on consumption” in the second quarter.
Confidence levels among UK consumers sank to a record low last month as Britons struggle to cope with the rising cost of living. Wages are failing to keep pace with inflation, which hit a more than 40-year high of 9.1% in May and is heading for double digits.
Deliveroo said in the second quarter orders were up 3% year-on-year, while GTV per order fell slightly as the size of consumers’ “baskets” was larger last year due to COVID-19 and lockdowns.
The group kept its guidance for its margins stable throughout the year.
It expects full-year 2022 EBITDA margin down 1.5% to 1.8%, versus a 2% decline in 2021.
Source: Capital
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