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Fri 21st Oct 2022 - Deliveroo reports fall in orders in third quarter as consumers cut back
Deliveroo reports fall in orders in third quarter as consumers cut back: Deliveroo has reported a fall in orders in the third quarter of 2022. The company said GTV growth was up 5% year-on-year in the quarter in constant currency. It said orders were down 1%, reflecting the difficult consumer environment. In the UK and Ireland, GTV was £944m in the third quarter, up 11% year on year but down 2% from the second quarter. Orders were 37.7 million in the third quarter, up 5% year on year but down 4% on the second quarter. In international, GTV was £758m in the third quarter, down 2% year on year and 10% from the second quarter. Orders were 35.1 million in the third quarter, down 7% year on year and 10% on the second quarter. Deliveroo’s consumer base was broadly stable year-on-year, with an average of 7.3 million monthly active consumers in the third quarter, up 1% year on year, but down on the second quarter. The company stated: “The more challenging macroeconomic environment, and reduction in consumer marketing against this backdrop, has seen weaker acquisition of new consumers and retention of existing consumers, contributing to the sequential decline.” Full-year GTV growth is now expected to be in the range of 4-8% in constant currency, the lower half of the previously announced range (4-12%) Adjusted Ebitda margin (as a percentage of GTV) is now expected to be in the range of minus 1.2-1.5% (previously minus 1.5-1.8%), “due to continued gross profit margin expansion and control of marketing and overheads costs”. At the end of the period, Deliveroo worked with more than 167,000 restaurant partner sites globally, up from 160,000 in the second quarter. Chief executive Will Shu 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. Since June, the year-on-year GTV growth trend has been broadly stable, despite the ongoing economic uncertainty. Throughout 2022 we have been adapting financially to the operating environment and driving forward on our path to profitability, and we now expect the second half of 2022 adjusted Ebitda margin to be better than our previous guidance. We continue to be excited about the opportunity ahead and our ability to capitalise on it.” Meanwhile, Deliveroo also confirmed Scilla Grimble will join as chief financial officer with effect from 20 February 2023. David Hancock, who has been serving as interim chief financial officer since 17 September 2022, will step down from the position with effect from the same date.

Number of Asian restaurant concepts set to join updated Premium Database of Multi-Site Companies: A number of Asian restaurant concepts are among the 30 new multi-site companies being added to the next edition of the Propel Premium Database of Multi-Site Companies, which will be released on Friday, 28 October, at midday. The updated Propel Multi-Site Database, which is produced in association with Virgate, features Glasgow sushi and ramen restaurant Maki and Ramen, founded by Teddy Lee, which opened its debut site in Glasgow’s Bath Street, and is to open a new venue in the city’s Renfield Street for its second site. Also added this month is Chinese concept Xiongqi Hotpot, which is led by Yanbo Yang, and operates six branches, some of which are franchises, around England – in London’s Charing Cross, Birmingham, Coventry, Manchester, Sheffield and Southampton. In addition, Adam Papa and Alastair Burgess, the co-owners of Happiness Forgets in Hoxton and Ever After in Shoreditch, who have now partnered with Jamie Younger and opened a new south east Asian restaurant in Covent Garden called Sunda Kitchen, will be featured. Premium subscribers will also receive a 2,200-word report on the new additions to the database. The comprehensive database is updated monthly and provides company names, the people in charge, how many sites each firm operates, its trading name and its registered name at Companies House if different. The database now features 2,677 companies. Premium subscribers will also receive the next edition of the New Openings Database on Friday, 4 November, at midday. It focuses on newly announced openings and upcoming launches in the sector and is updated every month. The next edition also includes an 8,000-word report on the new additions to the database. Premium subscribers also receive access to the Propel Turnover & Profits Blue Book, which is produced in association with Mapal Group, and the UK Food and Beverage Franchisor Database. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £895 plus VAT – whether they are an operator or a supplier. The single subscription rate is £445 plus VAT for operators and £545 plus VAT for suppliers. Email to upgrade your subscription. Subscribers also receive access to Propel’s library of lockdown videos and Friday Wrap interviews and now also have access to a curated video library of the sector’s finest leaders and entrepreneurs, offering their insights on running outstanding businesses in the sector. Premium subscribers also receive their morning newsletter 11 hours early, at 7pm the evening before our 6am send-out; regular video content and regular exclusive columns from Propel group editor Mark Wingett.

Cake Box appoints new CFO: Cake Box, the specialist retailer of fresh cream cakes, has appointed Michael Botha as chief financial officer. Botha has worked in senior finance and commercial roles for a number of franchise businesses over the last 20 years. He is currently chief financial officer for one of the largest franchisees in the Domino’s Pizza UK and Ireland system, a role he has held since 2016. Botha is working his notice and will join Cake Box no later than 10 April 2023. Prior to his current role, Botha spent more than 12 years at Domino’s Pizza Group as commercial director and group financial controller. He qualified as a chartered accountant in 1993. It is expected Botha will also join the board of Cake Box as an executive director at the time of his appointment. David Forth, who was appointed as interim chief financial officer on 14 March 2022, will leave the group when his contract expires in November 2022. Martin Blair, chairman of the audit committee, will be overseeing the finance function until Botha joins the group. During this period, Adam Batty, non-executive director, will temporarily assume Blair’s responsibilities as chairman of the audit committee. Neil Sachdev, non-executive chairman, said: “Michael brings extensive experience in senior finance roles across a number of high profile franchise businesses, and has a strong track record of overseeing the implementation of internal systems and controls. Michael will further strengthen our executive team through his experience in franchisee run corporates and good internal governance.” Botha added: “Cake Box has a strong financial position and brand with a highly attractive offering to customers, franchisees and shareholders. It has great growth prospects and I’m looking forward to joining the community of entrepreneurial franchisees and helping to make Cake Box a household name.”

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