Just Eat Takeaway.com reports wider 2022 loss after booking $4.87 billion impairment


Just Eat Takeaway.com NV on Wednesday reported a widened 2022 net loss after booking a 4.6 billion euro ($4.87 billion) impairment in its accounts due to past equity funded acquisitions, and backed its full-year forecast.

The Amsterdam-headquartered food-delivery group
said that it continues to actively explore the partial or full sale of Grubhub , while cautioning that there is no certainty any deal will be agreed, or any timing thereof.

Just Eat said in April that it was reviewing options for Grubhub including a partnership and/or full or partial sale of the business–which it had bought in October 2020 for $7.3 billion–following pressure from activist investor Cat Rock Capital Management LP. Cat Rock is Just Eat’s third-largest shareholder with a 5% shareholding, according to FactSet.

Just Eat made a total comprehensive net loss attributable to shareholders for the year ended Dec. 31 of EUR5.32 billion compared with a loss of EUR313 billion in 2021. IFRS loss for the period was EUR5.67 billion compared with a loss of EUR1.04 billion.

Revenue for the year was EUR5.56 billion compared with EUR4.50 billion and a consensus of EUR5.62 billion, taken from FactSet and based on 19 analysts’ forecasts.

Revenue less order fulfillment costs increased 24% to EUR2.4 billion, driven by strengthened unit economics across both delivery and marketplace, the company said.

Adjusted earnings before interest, taxes, depreciation and amortization–one of the company’s preferred metrics which strips out exceptional and other one-off items–for the year was EUR19 million compared with a loss of EUR350 million in 2021 and guidance provided in January for a profit of EUR16 million.

It reiterated on Wednesday that adjusted Ebitda for 2023 is expected to be EUR225 million with growth weighted toward the end of the year given lower order levels in the second half of 2022.

Gross transaction value–a key metric for the industry–was stable at GBP28.2 billion, as previously guided, driven by a higher average transaction value and positive foreign exchange movements, offsetting lower order volumes.

Just Eat said that it processed 984 million orders in 2022, down from 1.09 billion a year earlier.

“We expect a further improvement to adjusted Ebitda in 2023 and our ambition to create a highly profitable food delivery business is firmly on track,” Chief Executive Jitse Groen said.

Just Eat had cash and cash equivalents of EUR2.02 billion at Dec. 31 and said that it expects a substantially improved free cash flow in 2023.

Write to Ian Walker at ian.walker@wsj.com




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