Just Eat Takeaway Gains After CEO Emphasizes Path to Profit
Covid-19 Lockdowns Provide Boost For Online Grocery And Takeaway Sales
Photographer: Hollie Adams/Bloomberg
ByIvan Levingston and Cagan Koc
2 maart 2022 08:04 CETUpdated on2 maart 2022 10:45 CET
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JUST EAT TAKEAWA
Just Eat Takeaway.com NV’s shares rose as the company told investors it’s rapidly heading back to profitability after adjusted Ebitda swung to a loss last year.
Adjusted earnings before interest, taxes, depreciation and amortization swung to a loss of 350 million euros ($388 million) compared with a profit of 363 million euros a year earlier, according to a statement on Wednesday. Net loss rose to 1.04 billion euros from 151 million euros in 2020.
“After a period of significant investment, and with adjusted Ebitda losses having peaked in the first half of 2021, the company is now rapidly progressing towards profitability,” Chief Executive Officer Jitse Groen said in the statement.
The shares were trading 2.5% higher as of 10:41 a.m. in Amsterdam after jumping as much as 8%.
The Amsterdam-based company reported revenue for 2021 of 4.5 billion euros.
“The path to improved profitability should be driven by top line growth, better gross margins (delivery fees) and operational leverage,” ING analysts said in a note after the earnings report.
The company previously said order growth on its platform slowed in the fourth quarter, rising 14% from a year earlier, compared with a 25% third-quarter increase.
The firm said it intends to discontinue its operations in Norway and Portugal from April 1.
Just Eat’s U.S. subsidiary Grubhub is launching a new rapid delivery service in partnership with startup Buyk.
JET has been under pressure from investors to turn around its lagging share price. Cat Rock Capital Management LP called in October for the firm to sell or spin off Grubhub.
“We are talking to several parties around the U.S. position and we are very flexible, the only thing that’s very important to us is that Grubhub comes out stronger,” Groen said in a media briefing. “As long as a strategic partner brings that, then we’re going to be in a position to discuss it.”
Shares in JET have fallen about 28% in trading in Amsterdam this year, a performance that comes alongside a broader sell-off in the sector. The stock fell 4.5% at the close of trading Tuesday.
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