Deliveroo Q2 growth slows amid increased consumer headwinds

Deliveroo has revealed that its growth slowed in Q2, reporting growth of only 2%, against growth of 12% in Q1, reflecting the impact of increased consumer headwinds. 

However, Deliveroo said it continues to grow in the current “challenging” market with H1 2022, showing an increase of 12% in revenue to £1.3bn, as well as an increase of 10% in orders. In addition, the group’s gross transaction value increased by 7% year-on-year in constant currency £3.56bn. 

In addition, profitability and cash generation drove a reduction in adjusted EBITDA loss to £68m in H1 2022 from £106m in H2 2021.

Nonetheless, in spite of the group’s gross profit seeing an increase of 16% to £301m, an 8.5% gross profit margin up from 7.8% in H1 2022, Deliveroo experienced a loss before tax of £147m in H1 2022 compared to £95m in H1 2022. 

Will Shu, founder and CEO of Deliveroo, said: “We are focused on driving the business to the milestone of adjusted EBITDA profitability and then on to positive free cash flow generation. We are confident that in H2 2022 and beyond we will see further gains from actions already taken, as well as benefits from new initiatives.

“Underpinning our progress is a rigorous approach to capital allocation, ensuring that we invest behind the opportunities with the highest returns. I’m especially pleased that we achieved our financial progress while also continuing to improve our consumer value proposition, adding selection across our restaurant, grocery and non-food categories.”

He added: “We remain confident in our ability to adapt financially to any further changes in the macroeconomic environment. We continue to be excited about the opportunity ahead and our ability to capitalise on it.”