Orders dipped seven per cent in the first half of 2022 for Just Eat Takeaway.com as the delivery giant struggles to keep up with pandemic hype.
Despite the fall, revenue still grew seven per cent to €2.8 billion in H1 2022, as the firm headed towards what it called the “path to profitability”.
Northern Europe remained highly profitable, with adjusted EBITDA at €124m, and North America and UK and Ireland were Adjusted EBITDA positive in Q2 as well.
In H1 2022, adjusted EBITDA improved by 29 per cent to minus €134m.
The delivery giant expects to improve Adjusted EBITDA in the second half of this year and to be Adjusted EBITDA positive at a Group level in 2023.
The Amsterdam based firm posted losses of €3.5bn, predominantly caused by a goodwill impairment of €3bn related to the equity-funded acquisition of Grubhub in 2021.
“The impairment was due to the reduction in sector valuation comparables and the impact of increases in interest rates and equity volatility on technical valuation metrics,” the firm said.
Just Eat has come under fire from investors for the move to snap up US-headquartered Grub Hub in 2020 for $7.3bn in stock.
Shares are down nearly 60 per cent this year and the chief exec has been criticised by some of the firm’s top investors, including its second-largest shareholder Cat Rock, for the purchase.
Commenting on the results, Jitse Groen, CEO of Just Eat Takeaway.com said: “After a period of exceptional growth, Just Eat Takeaway.com is now two times larger than it was pre-pandemic. Whilst this growth required significant investment, we have continued to focus on executing our strategy to build and operate highly profitable food delivery businesses.”
Just Eat also took today as an opportunity to announce that the Board would nominate Mr. Jörg Gerbig for reappointment to its Management Board as COO.