Deliveroo reported its third-quarter trading update on Friday, which saw weaker order numbers as the firm warned sales growth would be at the lower end of guidance.
The British food delivery company reported gross transaction value (GTV) up 8% year-on-year to £1.7 billion. However, orders fell 1% to £72.8 million, which the group said reflected a difficult consumer environment.
Additionally, the firm reported GTV growth of 11% in the UK and Ireland, Deliveroo’s largest market, which was aided by the inclusion of McDonald’s. Although the Middle East, Asia Pacific, and European markets all underperformed.
The stock has lost 60% this year, however, is trading 3.51% this morning.
Will Shu, Founder and CEO of Deliveroo, said: “During the quarter, we delivered continued GTV growth year-on-year, strengthened our value proposition and made further progress on our path to profitability.”
As for its guidance, the firm said GTV growth was now expected to be in the range of 4% and 8%, in the lower end of its previous guidance of 4% and 12%.
However, adjusted EBITDA margin is now expected to be in the range of (1.2)% and (1.5)% due to continued gross profit margin expansion and control of marketing and overhead costs.