TOP NEWS: Just Eat orders surge in first quarter

(Alliance News) - Just Eat NV on Tuesday said an improved performance in the first ...

Alliance News 13 April, 2021 | 6:50AM
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(Alliance News) - Just Eat NV on Tuesday said an improved performance in the first quarter of its current financial year was driven by strong growth in the UK and by its investment programme.

The British-Dutch food delivery services provider said total orders in the first quarter grew by 79% year-on-year to 200.0 million, while delivery orders surged to 69.4 million from 23.3 million.

Delivery orders mean Just Eat Takeaway delivers food to customers on behalf of restaurants, putting it in direct competition with recent London listing Deliveroo Holdings PLC. Non-delivery orders means the restaurants make their own deliveries, the traditional business model for Just Eat Takeaway.

Operations in the UK and Canada boosted growth, Just Eat Takeaway explained, with total orders up 96% on the prior year in both regions. In Canada, delivery orders were up 88% to 26.5 million year-on-year.

Delivery orders in the UK multiplied to 22.9 million in the first quarter of 2021 from 2.9 million a year earlier. New partnerships were signed with household brands such as Leon, Tortilla and Chipotle, as well as coffee chains Starbucks and Costa, adding to Just Eat's growing restaurant supply. In London, Just Eat Takeaway said it achieved triple-digit order growth.

"The first quarter of 2021 marks our fourth consecutive quarter of order growth acceleration. Our fastest growing segment was the UK, and we are especially pleased with the roll-out of our UK delivery network, which has reached an impressive 695% order growth rate year-on-year," said Chief Executive Jitse Groen.

In the rest of the world, total orders were up 64% to 54.2 million, with delivery orders growing to 15.4 million from 4.3 million the year before.

Gross merchandise value amounted to EUR4.5 billion in the first quarter of 2021, up 89% on a constant currency basis compared with the first quarter of 2020.

Elsewhere, Germany and Netherlands demonstrated strong growth, with total orders rising by 77% to 39.2 million and by 53% to 15.3 million, respectively, year-on-year. Delivery orders were up to 3.1 million from 1.4 million in Germany, while in the Netherlands, delivery orders rose to 1.5 million from 600,000.

"We are also very proud of the acceleration in two of our highly profitable markets, with 77% order growth in Germany and 53% in the Netherlands. Just Eat is in excellent shape and the start of 2021 has been very strong," added Groen.

Going forward, Anglo-Dutch company said it intends to capitalise on the strong momentum from its investment programme and will continue to invest heavily and prioritise market share over adjusted earnings before interest, tax, depreciation and amortization.

Just Eat Takeaway said it expects further order growth acceleration for 2021 compared with 2020.

In addition, the company said it expects its Grubhub acquisition to complete in the first half of 2021. Just Eat Takeaway in June 2020 struck a USD7.3 billion deal to buy US peer Grubhub. It would form the largest takeaway food firm outside of China.

By Evelina Grecenko;

Copyright 2021 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Deliveroo Holdings PLC 255.40 GBX 2.45 -
Just Eat NV 6,491.00 GBX -2.02

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