Just Eat Takeaway.com NV reported revenue that rose last year as spending on orders increased, even as volumes fell.
(Bloomberg) — Just Eat Takeaway.com NV reported revenue that rose last year as spending on orders increased, even as volumes fell.
Revenue increased about 4% to €5.6 billion ($5.9 billion) in 2022, the company said in a statement Wednesday. That matched what analysts expected in the period.
The food-delivery companies that experienced surging orders during the pandemic have been grappling with a slowdown after restaurants reopened for in-person dining. Amsterdam-based Just Eat has been focusing on cutting costs as it looks for ways to win new customers.
Earnings before interest, taxes, depreciation, and amortization for the full-year was €19 million compared to a loss of €350 million the previous year, the company said. Just Eat maintained its long-term targets and said it still expects to achieve adjusted Ebitda of about €225 million in 2023, with growth skewed toward the end of the year.
The shares reversed earlier losses of as much as 11% and were trading 3% higher as of 1:40 p.m. local time.
Just Eat’s large Ebitda beat in the second half of 2022 was mainly due to the firm’s Northern Europe segment, according to Jefferies analyst Giles Thorne. Another key item from the results was a lack of guidance on the gross transaction value for 2023, Thorne said.
Growth in the US needs to improve said Chief Executive Officer Jitse Groen on a call with journalists, adding that the company’s businesses have “very varied results.”
Read More: Just Eat Takeaway Records 3 Billion-Euro Hit on Grubhub
Just Eat Takeaway’s recent efforts to consolidate have led it to partner with UK supermarket J Sainsbury Plc, Turkish startup Getir Perakende Lojistik A.S. and Domino’s Pizza Inc.
The firm has plans for additional partnerships this year, Groen said in an interview with Bloomberg. “We have a huge pipeline of grocery stores that we anticipate will go online in a large number of countries within a couple of months,” said Groen, referring to upcoming partnerships.
The company is not only looking into food delivery partnerships but is also carrying out test runs with Dutch retailer Blokker which allows customers to have non-food items such as cookery or batteries delivered.
Key Insights
- The company reported a loss for the period of €5.7 billion, which was wider than analyst estimates for a €3.65 billion loss. That was mainly due to a €4.6 billion impairment on past equity-funded acquisitions and a book loss of €275 million on the sale of the firm’s stake in iFood.
- Orders dropped 9% to €984 million and the gross transaction value of €28.2 billion in 2022 was stable compared to a year earlier due to higher average transaction value and favorable foreign exchange rates.
- The firm said in its January trading update that the pandemic continued to affect its year-on-year comparison, but a focus on profitability resulted in Just Eat meeting its goal of positive adjusted earnings before interest, taxes, depreciation and amortization in 2022.
- Just Eat said it continues to actively explore the possible sale of its US-based Grubhub unit.
- There is uncertainty about the future profitability of Grubhub because of the fee caps that are still in place in New York, Groen said.
–With assistance from Saksha Menezes.
(Updates throughout. An earlier version of this story corrected third bullet to say gross transaction value was driven by a higher average transaction value)
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