Deliveroo reports widening losses for first half of 2022
Food delivery platform Deliveroo has reported widening losses in its half-year results, with adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) loss of £68m, compared to a loss of £26m in the first half of last year.
However, this was lower than the £106m loss the company posted for the second half of last year.
Revenue for the first half of 2022 was up 12% to hit £1b, with orders up 10% and gross transaction value (GTV) up 7% year-on-year. The group said revenue exceeded the increase in GTV due to growth in commission revenue and consumer fees, and an increased contribution from advertising.
Growth slowed sequentially in Q2 compared to Q1; with GTV growth of 12% in Q1 and 2% in Q2, "reflecting the impact of increased consumer headwinds".
The business also reported a loss before tax of £147m in the first half of 2022 compared to £95m in the same period last year.
Will Shu, founder and chief executive of Deliveroo, said: "Deliveroo is committed to delivering profitable growth. We are focused on driving the business to the milestone of adjusted EBITDA profitability and then on to positive free cash flow generation. In March we set out our path to profitability and the levers to deliver this. 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.
"Underpinning our progress is a rigorous approach to capital allocation, ensuring that we invest behind the opportunities with the highest returns. Important as this financial lens is, we cannot lose our obsession with the three sides of our marketplace. So 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, with brands like McDonald's, WHSmith, Asda, Auchan, Esselunga and ParknShop.
"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."
Meanwhile, the company also announced that Lord Simon Wolfson would be stepping down from the board, effective as of 9 August.
Lord Wolfson said: "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. I have enjoyed my time working with Will, the executive team and my board colleagues over the past 18 months and wish the company all the best for the future."
Chair Claudia Arney said: "Simon has played a key role in supporting the company in its first year as a public company. His experience, advice and guidance have helped to navigate an unprecedented trading environment and to build solid foundations to capitalise on the opportunities ahead of us. On behalf of the board I would like to extend our sincere thanks for his important contribution."
Photo: nrgemi/Shutterstock
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