LONDON, July 18 (Reuters) – British meal delivery company Deliveroo has cut its revenue forecast for the full year as the economic outlook deteriorates and pressure mounts on consumers.
Group gross transaction value (GVV) growth for the full year is now expected to be in a range of 4% to 12% at constant currency, compared to a previous forecast of 15% to 25%. %, the company said.
The Deliveroo title lost 5% on the London Stock Exchange at 07:06 GMT.
According to the group, GTV growth in the second quarter slowed to 2% from 12% in the first quarter and reflects “the impact of consumer headwinds”.
The level of confidence of British consumers, faced with price increases, hit its lowest level last month. Wages are failing to keep pace with inflation, which hit a 9.1% record in more than 40 years in May and is heading into double digits.
Order growth in the second quarter was 3% year-on-year, while VTG per order fell slightly year-on-year as deliveries were higher during the COVID-19-related shutdowns, Deliveroo said.
The group, however, maintained its Ebitda (adjusted earnings before interest, tax, depreciation and amortization) margin forecast for 2022, i.e. a drop of 1.5% to 1.8%, compared to a drop of 2.0% in 2021.
“Management is confident in the company’s ability to adapt financially to a rapidly changing macroeconomic environment, through improved gross margin, more effective marketing spend and tight cost control” , she says. (Reporting James Davey; French version Elitsa Gadeva, editing by Kate Entringer)