Deliveroo posts 2022 revenue miss, flags economic uncertainty ahead

By Scott Kanowsky 

Investing.com — Shares in Deliveroo Holdings PLC (LON:) fell on Thursday after the food delivery service reported lower-than-expected annual and warned of an uncertain trading environment in 2023.

In its preliminary full-year results, the U.K.-based company reported a top-line figure of £1.97 billion (£1=$1.2105), representing growth of 14% compared to 2021, but missing Bloomberg consensus estimates of £2.03B.

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:) and Germany’s Delivery Hero AG (ETR:), has been facing headwinds throughout the period from rising inflation that has led consumers to rein in spending 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.