Consumer headwinds sees growth slow at Deliveroo

Deliveroo has reported continued growth despite challenging market conditions, with revenue for the first half of the year up 12% to £1b, orders up 10% and gross transaction value (GTV) up 7% year-on-year to £3.56b.

Growth slowed sequentially in the second quarter, with GTV growth 12% in Q1 and 2% in Q2, reflecting the impact of increased consumer headwinds.

The company also reported an adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) loss of £68m in H1 2022 from £106m in H2 2021; and a loss before tax of £147m in H1 2022 compared to £95m in H1 2021.

Revenue exceeded the increase in GTV due to growth in commission revenue and consumer fees, and an increased contribution from advertising.

The business reported cash and cash equivalents of £1.13b at 30 June 2022, compared to £1.29b at 31 December 2021.

Will Shu, founder and chief executive of Deliveroo, said: “Deliveroo is committed to delivering profitable growth. We are focused on driving the business to the milestone of adjusted EBITDA profitability and then on to positive free cash flow generation. In March we set out our path to profitability and the levers to deliver this. So far in 2022, we have made good progress delivering on our profitability plan, despite increased consumer headwinds and slowing growth during the period. We are confident that in H2 2022 and beyond we will see further gains from actions already taken, as well as benefits from new initiatives.

“Underpinning our progress is a rigorous approach to capital allocation, ensuring that we invest behind the opportunities with the highest returns. Important as this financial lens is, we cannot lose our obsession with the three sides of our marketplace. So I'm especially pleased that we achieved our financial progress while also continuing to improve our consumer value proposition, adding selection across our restaurant, grocery and non-food categories, with brands like McDonald's, WHSmith, ASDA, Auchan, Esselunga and ParknShop.

“We remain confident in our ability to adapt financially to any further changes in the macroeconomic environment. We continue to be excited about the opportunity ahead and our ability to capitalise on it."

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