Just Eat Takeaway dishes out both profits and billion-dollar losses

Just Eat Takeaway is gradually improving its profitability. Although consumers ordered less in 2022, the meal delivery company achieved a modest operating profit last year. Net losses, however, rose to 5.7 billion euros.

Year of recovery

2022 was the year for Just Eat Takeaway to return to profitability, after a 350 million euro loss in 2021. Creditors and investors ramped up the pressure, and CEO Jitse Groen succeeded at least partially: adjusted EBITDA rose to 19 million euros above zero. This year, profits should continue to improve.

However, gross sales (the value of all orders) stagnated at 28.2 billion euros as consumers ordered less often than in 2021, when the Covid pandemic was still raging. Those orders did come with a higher average price tag, however. Ninety million customers placed 984 million orders last year, which is more than before the pandemic. Delivering also became almost 25 % more profitable.

Grubhub loses billions

However, the company had to admit to a net loss of 5.7 billion euros, mainly because 4.6 billion euros was written off as a result of the failed acquisition of Grubhub in the United States and the merger with Just Eat. Without those one-off costs, the loss went down from 990 million to 792 million euros.

In 2023, Just Eat Takeaway expects to achieve EBITDA of around 225 million euros, although this year’s growth may not come until the end of the year. The meal delivery company fears that consumers will continue to order less food in the first half of the year. For Grubhub, the company is continuing its search for an acquirer this year.