Deliveroo warns on sales growth but confident about handling cost-of-living squeeze

Deliveroo is aiming for adjusted earnings to break even in late 2023 to early 2024

Food delivery firm Deliveroo has warned sales growth would be at the lower end of its previous guidance, as households cut back on take-aways due to rising prices.

Despite the worsening outlook, Deliveroo, which competes with Just Eat and Uber Eats, also slightly upgraded its margin for adjusted earnings, helped by lower marketing spend.

The group is aiming for adjusted earnings to break even in late 2023 to early 2024 and said that it was confident it could adapt to the worsening economic outlook where consumers are grappling with higher food and energy bills.

Shares in Deliveroo, down 60% this year, rose by more than 4%. Deliveroo said that gross transaction value (GTV) growth was now expected to be in the range of 4% to 8% in constant currency. "While the drop in GTV guidance is a negative, given the shifting focus of the industry towards profitability, the improvement in margin should be taken well," Goodbody analysts said. 

Reuters