British food delivery company Deliveroo slashed its full-year revenue guidance, blaming a worsening economic outlook as pressures on consumers mount. The group said its full-year gross transaction value (GTV) growth was now expected to be in the range of 4% to 12%; in constant currency versus previous guidance of 15% to 25%.

Deliveroo said second quarter GTV growth slowed to 2% from 12% in the first quarter.
It said this reflected “the impact of increased consumer headwinds” during the second quarter.

Confidence levels among Britain’s consumers sank to a record low last month; as they struggle with the accelerating cost of living. Wages are failing to keep pace with inflation that hit a more than 40-year high of 9.1% in May; and is heading for double digits.

Deliveroo said second quarter growth in orders was 3% year-on-year, while GTV per order fell slightly year on year; as basket sizes were higher during COVID-19 lockdowns for part of the same quarter last year. The group maintained its margin guidance for the year; it continues to expect 2022 adjusted earnings before interest, tax, depreciation and amortisation margin; Its expected to fall 1.5% to 1.8%, compared with a fall of 2.0% in 2021.

-Reuters