Deliveroo warns of growth hit despite strong Q3 

Deliveroo has warned that future sales could be hit by the ongoing cost of living crisis, despite welcoming continued year-on-year growth in Q3.

Over the period, gross transaction value (GTV) rose by 8% year-on-year, while GTV per order was up 6%, largely driven by item level price inflation. Nonetheless, orders were down by 1%, which the group said reflected the “difficult consumer environment”.

UKI growth outperformed International in the period, with GTV in the region up by 11% while it was down by 2% in International. International growth was said to be relatively stronger in Europe and Middle East, offset by declines in Asia Pacific.

In light of GTV developments witnessed during Q3 2022 and the current economic outlook, as well as progress made on path to profitability levers, Deliveroo issued a warning on future trading and revised its previous full-year guidance. 

According to the group, GTV growth is now expected to be in the range of 4–8%, the lower half of the previously announced range of 4–12%.

However, its adjusted EBITDA margin is now expected to be in the range of (1.2)–(1.5)%, down from the previous (1.5)–(1.8)%, due to continued gross profit margin expansion and control of marketing and overheads costs.

Will Shu, founder and CEO of Deliveroo, 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.”