WATCH: British food delivery company Deliveroo slashed its full-year revenue guidance as confidence levels among consumers sank to a record low last month as they struggled with the accelerating cost of living
, said its full-year 2022 gross transaction value 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, missing analysts' expectations.GTV growth was 70% in 2021 when COVID-19 lockdowns boosted demand.
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. In response to the crisis, Britons are trading down in both stores and products, switching from mainstream supermarkets to discounters and from branded to lower priced private label products.A Deliveroo delivery rider pushes a bicycle in London, Britain, March 31, 2021. REUTERS/Toby Melville/File PhotoThey are also cutting back on fuel purchases as they reduce the number of car journeys they make, cancelling streaming services and cancelling repair warranties on domestic appliances.
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 lockdowns for part of the same quarter last year.It continues to expect 2022 adjusted earnings before interest, tax, depreciation and amortisation margin to fall by 1.5% to 1.8%, compared with a fall of 2.0% in 2021.
It had said in March it would break even in about two years as the proportion of revenue spent on marketing in the competitive food delivery sector falls.
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