Deliveroo losses widen in 'challenging' market conditions
Deliveroo said on Wednesday that its losses widened in the first half in "challenging" market conditions, as it announced a £75m share buyback programme.
Pre-tax losses widened to £147m from £95m in the first half 2021 and the company posted an adjusted EBITDA loss of £68m versus £26m a year earlier. However, this was lower than the £106m loss seen in the second half of 2021 thanks to gross profit improvement and "efficiency of marketing investments", it said.
Revenue rose 12% to £1bn, with orders and gross transaction value (GTV) up 10% and 7% year-on-year, respectively.
Deliveroo said growth slowed sequentially in the second quarter compared to the first, reflecting the impact of increased consumer headwinds.
The company said it had delivered a "solid" performance in a "challenging" consumer environment.
Founder and chief executive Will Shu said: "So far in 2022, we have made good progress delivering on our profitability plan, despite increased consumer headwinds and slowing growth during the period. 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."
Deliveroo reiterated the revised 2022 guidance it gave in July for GTV growth of between 4% and 12%.
The company also announced a share purchase programme of up to £75m. This is expected to begin "shortly", it said, and to be completed no later than the preliminary results in March next year.
Also on Wednesday, Deliveroo announced that Next chief executive Lord Wolfson has decided to step down from the board.
"After much consideration, and with regret, I believe that the time required to continue in my role at Deliveroo is no longer compatible with my executive and other commitments," he said.