Deliveroo has cut its forecasts after revealing waning demand for takeaways as the cost-of-living crisis intensifies.
The food delivery giant revealed growth in group sales by gross transaction value (GTV) declined sharply to 2% on a constant currency basis in the second quarter, down from 12% in the previous three months.
Sales growth also dropped to 4% from 12% in the first quarter.
According to Deliveroo, the slowdown will affect sales over the full year, forecasting annual sales growth of between 4% and 12%, down markedly from the previous 15% to 25% guidance.
READ MORE: Deliveroo unveils new advertising platform
However, the group believes the figures “reflect the impact of increased consumer headwinds”, but it kept its outlook from 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 in a statement.
Its latest update also showed that the amount spent per order fell, down “slightly” year-on-year in a reversal of trends seen during the Covid-19 lockdown restrictions.
Click here to sign up to Grocery Gazette’s free daily email newsletter
