Connect with us

Hi, what are you looking for?

Editor’s Pick

Sales growth cools at Deliveroo as customers lose appetite for takeaways

Deliveroo gave warning that its sales growth would be at the lower end of previous guidance as rising prices prompt consumers to cut back on takeaways.

Despite the economic gloom the delivery group said that it remained confident of being able to adapt and hit its target of breaking even in the second half of next year or the second half of 2024.

In a third-quarter trading update it upgraded its earnings forecast on the back of “more efficient marketing expenditure and tight cost control”.

Deliveroo was founded in 2013 by Will Shu and Greg Orlowski. It works with about 185,000 restaurants and grocery partners, deploying 170,000 riders to deliver food to consumers. The company has its headquarters in London and operates in 12 markets: Australia, Belgium, France, Hong Kong, Italy, Ireland, the Netherlands, Qatar, Singapore, United Arab Emirates, Kuwait and the UK.

In what it called “another solid quarter” given the difficult consumer environment, it reported a 1 per cent decline in orders to 72.8 million but UK and Ireland orders were up 5 per cent to 37.7 million compared with a 7 per cent fall elsewhere.

The gross transaction value (GTV) — the total value of orders — rose by 8 per cent to £1.7 billion, up 5 per cent at constant currency, on the back of price inflation. In the UK and Ireland GTV grew by 11 per cent helped by a delivery deal with McDonald’s.

Deliveroo said that GTV growth for the full year was now expected to be in the range of 4 per cent to 8 per cent at constant currency, at the lower end of the previously announced range of 4 per cent to 12 per cent. This had already been downgraded from 15 per cent to 25 per cent in July.

David Brohan, an analyst at Goodbody, said: “While the drop in GTV guidance is a negative, given the shifting focus of the industry towards profitability, the improvement in margin should be taken well.”

For the present year Deliveroo said it would remain in the red at an underlying earnings level, although it now expected to deliver an adjusted margin, as a percentage of GTV, in the range of a loss of 1.2 per cent to 1.5 per cent, compared with previous guidance of a negative margin of 1.5 per cent to 1.8 per cent.

It said that moving to breakeven in 2023 or 2024 was “the next key milestone on the path to achieving its longer-term profit ambitions”.

Sandeep Sharma, an analyst at the research firm Third Bridge, said that Deliveroo’s withdrawal from Germany, Spain and, as confirmed this week, the Netherlands, “could indicate a shift in strategy towards greater focus on its core markets in a bid to drive profitability”.

Shu, 42, 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.”

Shares in Deliveroo, which have taken a battering since floating at 390p in March last year, rose by 4.25p, or 5.1 per cent, to 86.25p in morning trading.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



REUTERS TOKYO — Japan’s economy, the world’s third-largest, shrank less than initially estimated in the third quarter, bolstering a view that it is slowly...


PIERRE BORTHIRY/UNSPLASH WASHINGTON — US Securities and Exchange Commission (SEC) Chair Gary Gensler said that companies that help facilitate transactions in the cryptocurrency market...


Twitter owner and Tesla boss Elon Musk briefly lost his title as the world’s richest person on Wednesday, according to Forbes, following a steep...


Twitter owner and Tesla boss Elon Musk briefly lost his title as the world’s richest person on Wednesday, according to Forbes, following a steep...


DRAHOMÍR POSTEBY-MACH -PIXABAY BERLIN — The founder of Russia’s only LGBTQ+ museum said he was forced to close its doors on Wednesday after President...


Philippine lawmakers are looking to tap central bank profits to seed a proposed sovereign wealth fund, after an earlier plan to use pension funds...

You May Also Like


BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...


REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...


KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...


COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Disclaimer: Respect, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.