Deliveroo slashed its sales forecasts today as it predicted the rising cost of living would lead to a slowdown in consumer spending this year.
In a trading update today, Deliveroo said that total transactions on its platform hit £3.56bn in the first half of the year had- a seven per cent rise year-on-year – but bosses warned economic headwinds in the months ahead would lead to growth in the range of 4-12 per cent, down from previous guidance of 15-25 per cent.
The slashed forecast comes after London-listed delivery firm said growth in transactions slowed from 12 per cent in the first quarter to two per cent in the second quarter.
Bosses said they were now preparing to tighten spending to shore up the balance sheet in the months ahead.
“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,” they said in a statement.
The firm has been grappling with a volatile share price since listing last year, with shares plunging over 60 per cent this year.