Deliveroo downgrades FY revenue forecast, cites 'consumer headwinds'

Deliveroo downgraded its full-year revenue guidance on Monday as it highlighted "consumer headwinds" amid the cost-of-living crisis.

In an update for the second quarter, the group said gross transaction value (GTV) growth eased to 4% in the UK and Ireland from 12% in the first quarter, while international slowed to 1% from 11%. This meant that group GTV in Q2 came in at 2%, down from 12% in Q1.

Based on the GTV seen in the second quarter and a "more cautious" economic outlook, the company now forecasts full-year GTV growth of between 4% and 12% at constant currency, down from previous guidance of 15% to 25%.

However, Deliveroo maintained its adjusted EBITDA margin guidance and said its balance sheet remains strong.

"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," it said.