Takeaway delivery group Deliveroo has slashed its annual sales outlook as it revealed a cut back in customer demand due to the cost-of-living crisis.
The group said growth in group sales by gross transaction value (GTV) pared back sharply to 2% on a constant currency basis in the second quarter, down from 12% in the previous three months, which it said “reflects the impact of increased consumer headwinds”.
In the UK, sales growth dropped to 4% from 12% in the first quarter.
It said the slowdown will impact sales over the full-year, forecasting annual GTV of between 4% to 12%, down from the previous 15% to 25% guidance.
But it kept its outlook for underlying earnings margins unchanged.
“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,” Deliveroo said.
