TOP NEWS: Just Eat Takeaway raises guidance as interim orders surge

(Alliance News) - Food delivery firm Just Eat NV on Thursday posted growth in second ...

Alliance News 15 July, 2021 | 7:00AM
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(Alliance News) - Food delivery firm Just Eat NV on Thursday posted growth in second quarter orders, said it has gained market share in the UK and added that its losses peaked in the first half and margins will pick up from here on in.

The company also boosted its annual guidance. It now expects order growth of "more than" 45% for 2021, excluding new US acquisition Grubhub, raised from its previous forecast of order growth of more than 42%.

Total orders excluding the US rose 47% year-on-year to 212.4 million in the second quarter of 2021, from 144.9 million.

Just Eat Takeaway also provided pro forma figures, which include the US. The company sealed its Grubhub acquisition in mid-June, so the second quarter pro forma figures are presented as if the deal was completed back in January of last year.

It had acquired Grubhub for USD7.3 billion.

Pro forma orders were 37% higher yearly at 279.7 million from 203.8 million.

Pro forma delivery orders alone, so those that Just Eat Takeaway's own couriers get to destination, were 79% higher at 123.6 million from 69.1 million. Excluding the US, they more than doubled to 79.5 million from 34.4 million.

Pro forma gross transactions values jumped 26% to EUR7.2 billion annually from EUR5.7 billion. They were up 42% to EUR5.0 billion from EUR3.5 billion excluding the US.

For the whole of the first half, pro forma order growth was 51% to 546.8 million from 362.7 million and pro forma delivery orders more than doubled to 235.2 million 114.2 million. Pro forma transaction values were up 46% at EUR14.1 billion from EUR9.7 billion.

Including Grubhub, gross transaction values for 2021 are tipped to land between EUR28 billion and EUR30 billion.

"The company's efforts in the historically under-invested legacy Just Eat markets have continued to drive growth and win online share. Just Eat gained online share in the UK, including a significant inflection in London with triple-digit order growth in the first half of 2021 compared with the first six months of 2020," Just Takeaway added.

"Just Eat will continue to invest in growth and prioritise market share over adjusted earnings before interest, tax, depreciation and amortisation. Management believes that adjusted Ebitda losses peaked in the first half of 2021 and expects its adjusted Ebitda margin to improve going forward, driven by the removal of significant fee caps in the US and Canada, improved unit economics in the company's delivery network and increasing benefits from the investment programme in the legacy Just Eat markets."

By Eric Cunha;

Copyright 2021 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Just Eat NV 5,640.00 GBX -3.90

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