Deliveroo has reported a fall in orders in the third quarter of 2022. The company said GTV growth was up 5% year-on-year in the quarter in constant currency.
It said orders were down 1%, reflecting the difficult consumer environment. In the UK and Ireland, GTV was £944m in the third quarter, up 11% year on year but down 2% from the second quarter. Orders were 37.7 million in the third quarter, up 5% year on year but down 4% on the second quarter.
UK growth outperformed international, with GTV in UK and Ireland up 11% and in International down 2% year-on-year.
Deliveroo said international growth was relatively stronger in Europe and Middle East, offset by declines in Asia Pacific (where renewed COVID-related restrictions in the third quarter of 2021 gave a tough comparison base)
The group has updated its full year guidance based on GTV developments during the quarter and the current economic outlook.
The company stated: “The more challenging macroeconomic environment, and reduction in consumer marketing against this backdrop, has seen weaker acquisition of new consumers and retention of existing consumers, contributing to the sequential decline.” Full-year GTV growth is now expected to be in the range of 4-8% in constant currency, the lower half of the previously announced range (4-12%) Adjusted Ebitda margin (as a percentage of GTV) is now expected to be in the range of minus 1.2-1.5% (previously minus 1.5-1.8%), “due to continued gross profit margin expansion and control of marketing and overheads costs”. At the end of the period, Deliveroo worked with more than 167,000 restaurant partner sites globally, up from 160,000 in the second quarter.
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.”
