Business is booming.

Just Eat orders slide as hospitality venues reopen

Just Eat orders plummet after hangouts reopen, but rising food prices boost takeout giant’s revenue

  • The volume of orders on the delivery platform decreased by 7% to 509.4 million
  • Demand fell in all areas, with the largest decline in North America
  • Just Eat’s total losses in the first half have increased from €486 million last year to nearly €3.5 billion

Just Eat Takeaway has seen orders fall this year as the easing of Covid-19 restrictions brought customers back to pubs and restaurants.

After two years of unprecedented expansion, orders on the delivery platform fell 7 percent in the six months ended June to 509.4 million, compared to the same period in 2021.

Demand fell across all regions, with the largest decline in North America, the largest market, where orders fell 20 million after record growth in the previous year.

Slump: After two years of unprecedented expansion, orders on the Just Eat platform fell 7 percent to 509.4 million in the six months ended June

However, the total value of the purchases processed by the company remained stable at €14.2 billion thanks to the increase in average transactions due to higher food prices and positive currency movements.

This increased the company’s total sales by 91 percent to €2.78 billion, as did the acquisition of Chicago-based rival Grubhub, which it bought just over 12 months ago for £5.75 billion.

Due to impairment charges related to the acquisition of the US takeout giant, Just Eat’s total loss in the first half rose from €486 million last year to nearly €3.5 billion this time around.

Keith Bowman, an investment analyst at Interactive Investor, said: “Just Eat’s timing in buying Grubhub, and against the backdrop of the Covid crisis, was arguably under-judged, given today’s €3 billion depreciation.”

However, on an underlying basis, the company’s losses improved to €134 million with the North American division nearing break even and the British Isles and Northern Europe operations turning profitable in the second quarter.

The London-listed group expects its adjusted profit margin to remain negative this year – with a range of minus 0.5 percent to minus 0.7 percent of gross transaction value – before turning positive in 2023.

Decline: Some investors are pressuring Just Eat to sell Grubhub to boost its share price.  Just Eat Takeaway.com shares have plunged about three-quarters in the past 12 months

Decline: Some investors are pressuring Just Eat to sell Grubhub to boost its share price. Just Eat Takeaway.com shares have plunged about three-quarters in the past 12 months

Chief executive Jitse Groen: ‘After a period of exceptional growth, Just Eat Takeaway.com is now twice as large as it was before the pandemic.

“While this growth has required significant investment, we have continued to focus on executing our strategy to build and operate highly profitable food delivery businesses… Our path to profitability is accelerating.”

Just Eat Takeaway.com Shares closed 6.7 percent higher at £16.62 on Wednesday, although their value has plunged by about three-quarters in the past 12 months.

Just Eat is considering a partial or full sale of Grubhub after pressure from some investors to sell or merge certain assets in an attempt to increase the company’s share price.

Alex Captain, the founder of Cat Rock Capital, accused the delivery group’s management of chairing a… ‘catastrophic destruction of equity’ by providing a ‘misleading’ financial outlook ahead of two shareholder votes to approve Grubhub’s purchase.

Ahead of Just Eat’s annual general meeting in April, he called on investors to vote to remove the company’s finance boss to “restore credibility in capital markets,” as well as the chairman and three other members of the supervisory board. .

Chief financial officer Brent Wissink successfully retained his position, but Just Eat chairman Adrian Nuhn announced that he would be stepping down just hours before his re-election was due.

In his statement of resignation, Nuhn, 68, stated, “Not seeking re-election is, in my opinion, the best decision I can make in serving the interests of the company and its stakeholders.”

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