Food delivery firm Deliveroo PLC on Monday said it has cut its annual sales outlook, as it has been hit by tumbling consumer confidence and as pandemic tailwinds unwind.

Total gross transaction value climbed just 2% at constant currency in the second quarter of 2022, slowing markedly from 12% growth in the first quarter. For the whole of the first half, it grew 7%. GTV had more than doubled in the first half of 2021.

For the full year, it expects GTV growth in the region of 4% to 12%, its guidance cut from a previous range of 15% to 25%.

Deliveroo said that the slowdown in growth reflects the impact of lower consumer confidence paired with a lower demand for takeaways post-pandemic.

It reaffirmed margins guidance, however. It expects an adjusted earnings before interest, tax, depreciation and amortisation margin between minus 1.5% and minus 1.8% for 2022, improved from minus 2.0% in 2021.

The company added that its balance sheet remains ‘strong’.

‘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,’ Deliveroo said.

Shares in Deliveroo were down 0.3% to 84.72 pence each in London on Monday morning.

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