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Deliveroo has downgraded its sales forecasts for the year as squeezed consumers cut back their spending on takeaways.
In a trading update, the group revealed gross transaction value (GTV) growth for the second quarter plunged to just 2%, compared with 12% in the first three month of the year.
GTV for the UK and Ireland was down to 4%, versus 12% in the previous quarter, and internationally growth was down to 1% from 11%.
Deliveroo blamed the impact of “increased consumer headwinds” during the quarter and also said the figures reflected elevated demand a year ago when lockdown restrictions remained in place in many of its markets.
As a result of the fall in demand, Deliveroo slashed its full-year GTV growth expectations to a range of 4%-12%, down from 15%-25% previously.
The group maintained its adjusted EBITDA margin guidance as it looked to make savings on its marketing spend and put in place tight cost control measures.
In Q2 2022, growth in orders was 3% year-on-year, while GTV per order reduced slightly as consumers ordered smaller baskets than during lockdown.
GTV for the first half came in at £3.6bn, an increase of 7% year on year.
Shares in Deliveroo fell 2% to 84.7p as markets opened this morning, with the embattled food delivery group down almost 60% in value so far in 2022.
Morning update
The FTSE 100 started the week strongly, climbing 1.3% to 7,248.76pts this morning.
Early risers included FeverTree Drinks, up 6% to 917.8p to make back some ground after Friday’s drubbing, Just Eat Takeaway, up 2.4% to 1,176.2p, Hotel Chocolat Group, up 1.7% to 240p, and Greggs, up 1.6% to 1,913p.
Aside from Deliveroo, fallers included Premier Foods, down 3.5% to 104.2p, HelloFresh, down 1.5% to €31.43, Nichols, down 1.3% to 1,179.4p, and Imperial Brands, down 0.7% to 1,844.5p.
This week in the City
Tomorrow kicks off with the latest grocery sales figures and market share data from Kantar.
Premier Foods holds its AGM and updates on first-quarter trading on Wednesday.
Ocado reports on its first half on Thursday, while drinks group Britvic updates on its Q3 performance.
And the week is finished off by the latest ONS retail sales figures for June and the monthly GfK consumer confidence index.
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