Just Eat revenues surge 33% despite ‘peak year’ of losses

Just Eat has reported its revenues surged 33% to €5.3bn (£4.41bn) for the full year in 2021, up from €4bn (£3.33bn) in 2020, despite Just Eat reporting a “peak year” for losses. Losses for the period on an IFRS basis were €1.04bn (£8.69m) in 2021, widening from a loss of €151m (£125.82m) in 2020. Overall, high losses in the year were caused by an increase of depreciation, amortisation and impairment, an increase of financing expenses and one-off integration costs. Northern Europe was the most profitable segment in the industry with an adjusted EBITDA of €256m (£213.31bn) in 2021. In the UK and Ireland, the company doubled orders in the past two years and is now reportedly on a path to profitability. In North America, including both the US and Canada, various states, provinces and local governments imposed mandatory fee caps on online food delivery marketplaces. This had a “significant” impact of €192m (£159.98m) on adjusted EBITDA. The Brazilian market leader iFood, however, continued to deliver “strong” growth in 2021 as GTV grew 55% year-on-year and revenues increased 51% in the same period. The company’s business has also accelerated with active consumers, average monthly order frequency, returning consumers and average transaction values (ATVs) improving to above pre-pandemic levels. Overall, an excess of €30bn (£25bn) of GTV is to be added over the next five years. Going forward, Just Eat Takeaway.com management intends to discontinue its operations in Norway and Portugal to concentrate on leadership positions and profit pools, effective 1 April 2022. Adjusted EBITDA in Norway and Portugal is approximately minus €10m (£8.33) on an annual basis. Jitse Groen, CEO of Just Eat Takeaway.com, said: “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. “While the Northern European segment, with an adjusted EBITDA of €256m (£213.31bn) in 2021, is the most profitable segment in the industry already, we also concluded the year with much improved adjusted EBITDA in our other operating segments. The team is working hard to make 2022 a successful year for both the company and all our stakeholders.”

Just Eat revenues surge 33% despite ‘peak year’ of losses

However, the company plans to discontinue its operations in Norway and Portugal as adjusted EBITDA is approximately minus €10m (£8.33bn) on an annual basis

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