Deliveroo reveals bigger casualties as the next boss leaves the board

Deliveroo posted larger pre-tax losses after defaulting consumers cut back on their takeaways following news that Next boss Simon Wolfson had left his board.

The food supplier posted a pre-tax loss of £147.3m for the first half of 2022 compared to losses of £95.4m a year earlier, just weeks after it lowered its full-year guidance on slumping sales growth.

In another blow to the group, Deliveroo said non-executive director Wolfson, who is chief executive of high street chain Next, resigned from the board on Tuesday just 18 months after taking on the role.

Wolfson, who joined the group’s board of directors in advance of the listing, said: “After careful consideration and with regret, I believe that the time required to continue my role at Deliveroo is no longer compatible with my leadership and other commitments.”

Deliveroo also announced plans to pull out of the Netherlands, which accounted for just 1 percent of sales according to gross transaction value (GTV).

Deliveroo results showed that second-quarter GTV sales growth on a constant currency basis fell sharply to 2 percent, compared with 12 percent in the previous three months, as the cost-of-living crisis begins to affect demand for takeaways.

Despite this, it posted half-year sales of more than £1 billion for the first time, with sales up 12 per cent year-on-year.

But last month it downgraded its guidance as it said the slowdown will affect sales for the full year and forecast annual sales growth of between 4 percent and 12 percent, well below the previous guidance of 15 percent to 25 percent.

Will Shu, Founder and CEO of Deliveroo said, “We have made good progress in executing our profitability plan, despite increasing consumer headwinds and slowing growth during the period.

“We are confident that we will see further gains from actions already taken as well as benefits from new initiatives in the second half of 2022 and beyond.”

Joshua Warner, market analyst at City Index, said: “Demand eased in the second quarter compared to the first as consumers became more cost-conscious in the inflationary environment, although Deliveroo said it continued to gain market share in core markets such as the UK, France and Italy and reiterated its ambitions for the full year.”

He said the plans to leave the Netherlands “will help Deliveroo as it aims to become profitable at adjusted underlying earnings levels in the coming years.”

https://www.independent.ie/business/world/deliveroo-reveals-widened-losses-as-next-boss-quits-board-41902494.html Deliveroo reveals bigger casualties as the next boss leaves the board

Fry Electronics Team

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