Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

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 -- 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.)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.