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Deliveroo lowers FY22 guidance amid consumer headwinds

Q2 2022 saw growth in orders of 3% year-on-year, while GTV per order reduced ‘slightly’ year-on-year, as basket sizes were elevated during lockdowns for part of Q2 FY21

Deliveroo has lowered its gross transaction value (GTV) guidance for FY22 from 15–25% to 4–12% due to a “more cautious” economic outlook and increased consumer headwinds.

Meanwhile, the company continues to expect FY22 adjusted EBITDA margin to be in the range of -1.5 to -1.8%, an improvement against -2% in FY21 and -3.2% in H2 FY21.

The lowered forecast is based on the GTV development during Q2 2022 which saw growth of 4% year-on-year. This marks a slowdown in GTV growth compared to Q1 FY22, a period that still included lockdown restrictions in many markets.

Overall, in H1 FY22, GTV was £3.56bn, an increase of 7% year-on-year. Q2 2022 saw growth in orders of 3% year-on-year, while GTV per order reduced “slightly” year-on-year, as basket sizes were elevated during lockdowns for part of Q2 FY21.

The UK and Ireland saw GTV growth of 4% in Q2 and international sales grew 1%.

Deliveroo said: “Management is confident in the company’s ability to adapt financially to a rapidly changing macroeconomic environment, through gross margin improvements, more efficient marketing expenditure and tight cost control.”

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