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Deliveroo flags economic uncertainty ahead despite narrower annual loss in 2022

Published 03/16/2023, 04:38 AM
Updated 03/16/2023, 07:50 AM
© Reuters.

By Scott Kanowsky

Investing.com -- Deliveroo Holdings PLC (LON:ROO) reported a rise in annual revenue despite cost-of-living pressures hitting consumer spending habits, but warned of an uncertain trading environment in 2023.

In its preliminary full-year results, the U.K.-based food deliverer reported a top-line figure excluding its operations in Australia and the Netherlands of £1.97 billion (£1 = $1.2105), representing growth of 14% compared to 2021. When including Australia and the Netherlands, revenue increased by 12% to £2.04B. The firm's loss for the year from continuing and discontinued operations also improved by just over a tenth to £294M.

Founder and Chief Executive Officer Will Shu noted in a statement that market conditions in 2022 had been "difficult." The service, as well as sector peers like Just Eat Takeaway (AS:TKWY) and Germany's Delivery Hero (ETR:DHER), has been facing headwinds throughout the period from rising inflation that has led consumers to rein in expenditures on takeaways.

The group also flagged that gross transaction value growth - a key metric of the total dollar value of purchases made on the platform - will be "broadly flat" in the first quarter of its current fiscal year.

"The macroeconomic outlook for the year ahead remains uncertain, but our record in the past 12 months makes me optimistic about our ability to adapt and continue to deliver on our plans to drive profitable growth," Shu said.

Shares in Deliveroo slipped by more than 3% on Thursday.

(An earlier version of this article was updated to remove an analyst estimate that was not comparable with results.)

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