Deliveroo reduces sales expectations amid ‘ongoing economic uncertainty’

The online food delivery app said growth in gross transaction value (GTV) was now forecast to be between 4% and 8% in 2022. This represents the lower half of its previously guided range of 4% to 12% growth. 

Adjusted EBITDA margins are now expected to decline between 1.2% and 1.5%. Deliveroo had previously predicted a fall of between 1.5% and 1.8%.

The tech business attributed that expected improvement to “continued gross profit margin expansion and control of marketing and overheads costs”. 

Deliveroo provided the updated guidance as part of its third-quarter trading update, covering the three months to September 30. The business registered an 8% uplift in GTV on a reported currency basis to £1.7bn.

Order volumes slipped 1% to 72.8m but the average value of those orders increased 9% to £23.40.  

Sales growth in its core UK and Ireland market outpaced its international division. GTV in its domestic market jumped 11% on a reported currency basis to £944m, as order numbers grew 5% to 37.7 million. Average order values hit £25 – a 5% uptick year on year. 

By contrast, GTV from international operations rose 5% to £758m, as order volumes slipped 7% to 35.1 million.

Deliveroo founder and chief executive Will Shu said: “During the quarter, we delivered continued GTV growth year on year, strengthened our value proposition and made further progress on our path to profitability. Since June, the year-on-year GTV growth trend has been broadly stable, despite the ongoing economic uncertainty. 

“Throughout 2022 we have been adapting financially to the operating environment and driving forward on our path to profitability, and we now expect the H2 2022 adjusted EBITDA margin to be better than our previous guidance. We continue to be excited about the opportunity ahead and our ability to capitalise on it.”

• Don’t miss the must-read analysis of the week – sign up to receive the Editor’s Choice every Friday