18 September 2024
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Global Industry

Just Eat Takeaway: Announces Half Year 2023 Results

Amsterdam / NL. (tkwy) Just Eat Takeaway.com N.V., hereafter the «Company» or together with its subsidiaries «Just Eat Takeaway.com», one of the world’s leading online food delivery companies, reports its financial results for the first six months of 2023. Highlights:

  • Northern Europe and UK and Ireland returned to GTV growth in Q2 2023
  • Half-year Adjusted Ebitda improved to EUR 143 million
  • UK and Ireland on track to reach a similarly high AEbitda Margin as Northern Europe
  • Fast approaching our positive free cash flow target

«Since our IPO, our objective has been to build and extend large scale and sustainably profitable positions in our markets. With the majority of our Orders coming from Northern Europe and UK and Ireland, these two segments returning to growth in the second quarter of 2023 is a key milestone. Encouragingly, UK and Ireland is on its way to a similarly high profit margin as Northern Europe. The remainder of the business is also showing improving GTV growth and profitability trends, leading to the Company fast approaching its positive free cash flow target.»

Jitse Groen, CEO and founder of Just Eat Takeaway.com

Group highlights

  • Northern Europe and UK and Ireland returned to year-on-year Gross Transaction Value (‘GTV’) growth of 4 percent and 1 percent (3 percent at constant currency) respectively in Q2 2023. As a consequence, the H1 2023 GTV growth for both segments was also positive. North America and Southern Europe and ANZ are following the same improving trend. GTV for the entire business declined by 4 percent on a constant currency basis in Q2 2023.
  • Adjusted Ebitda amounted to EUR 143 million in H1 2023, reflecting a material improvement of EUR 277 million compared with H1 2022. Ongoing focus on efficiency in Delivery operations as well as general costs saving initiatives were the main reasons for this increase. All operating segments materially contributed to this improvement.
  • In Northern Europe, the Adjusted Ebitda Margin as a percentage of GTV (‘Adjusted Ebitda Margin’) reached our 5.0 percent long-term target in H1 2023. The UK and Ireland segment, with a 1.8 percent margin, is on track to reach a similarly high Adjusted Ebitda Margin.
  • We are fast approaching our positive free cash flow target. Free cash flow before changes in working capital significantly improved to minus EUR 78 million in H1 2023 from minus EUR 407 million in H1 2022. Excluding exceptionals and a one-off 2012/2013 tax settlement with the Danish tax authority, free cash flow before changes in working capital was minus EUR 16 million.
  • Grubhub, with a free cash flow of minus EUR 56 million in H1 2023, is also on a path to cash flow breakeven. We have initiated a number of measures which we believe will lead to further improvements going forward.
  • Our global grocery proposition continues to progress well with approx. 40,000 grocery Partners on the platform by 30 June 2023, a growth of 36 percent compared with the end of June 2022, with particularly strong progress in the UK and Ireland.
  • Advertising[4] revenue was EUR 99 million in H1 2023 excluding Grubhub, a 33 percent increase compared with the same period last year, with significant opportunities ahead to expand offerings within this vertical. Grubhub’s advertising revenue is excluded as this is part of a tiered commission structure.
  • Brent Wissink informed the Company that he wishes to pursue other opportunities and will be stepping down as Chief Financial Officer and resign from the Management Board of the Company as per the Company’s annual general meeting in May 2024. The Supervisory Board will initiate the process of finding a successor for Brent Wissink.

Segment highlights

  • In the North America segment, GTV decreased by 12 percent to EUR 5.1 billion in H1 2023, mainly caused by lower Order volumes, which were partly offset by a higher ATV. Adjusted Ebitda turned positive and amounted to EUR 51 million in H1 2023, from minus EUR 4 million in H1 2022, despite the ongoing headwind to segment profitability from fee caps in New York City. In parallel to actively exploring a partial or full sale of Grubhub, we have appointed a new CEO, are realising USUSD 30 million+ run-rate savings from 2024 onwards through a restructuring and have established a path to cash flow breakeven at Grubhub, excluding any positive impact of a potential New York City fee cap amendment.
  • In the Northern Europe segment, GTV increased by 2 percent to EUR 3.8 billion in H1 2023 compared with H1 2022, driven by a higher ATV. Major markets such as Germany and the Netherlands saw sequential improvement in year-on-year Order growth. Northern Europe continued to demonstrate strong improvements in profitability with an Adjusted Ebitda of EUR 191 million in H1 2023, up from EUR 124 million in H1 2022. The Adjusted Ebitda Margin was at our 5.0 percent long-term target in H1 2023, with potential for further improvement.
  • In the UK and Ireland segment, GTV increased by 1 percent at constant currency in H1 2023 compared with H1 2022. Both Orders and GTV sequentially grew in Q2 2023 compared with Q1 2023. Adjusted Ebitda improved significantly to EUR 56 million in H1 2023 from minus EUR 18 million in H1 2022, showing strong margin improvement with Adjusted Ebitda Margin reaching 1.8 percent.
  • In the Southern Europe and ANZ segment, Adjusted Ebitda losses halved to minus EUR 55 million in H1 2023 from minus EUR 110 million in H1 2022 on the back of improved unit economics.

Other Financials

  • Just Eat Takeaway.com’s cash and cash equivalents amounted to EUR 1,799 million as per 30 June 2023. We are well-capitalised to meet all our future debt obligations.
  • We were able to use part our strong liquidity position to buy back shares. Under the EUR 150 million share buyback programme announced on 19 April 2023, 2.73 percent of issued shares were repurchased as per 21 July 2023.
  • Net loss for the period of EUR 258 million in H1 2023 was mainly driven by the non-cash amortisation of intangibles acquired through business combinations.

Outlook

  • GTV growth to be in a range of -4 percent to +2 percent year-on-year in 2023[5], with a return to growth skewed towards the end of the year, given the lower absolute Order level of H2 2022 versus H1 2022.
  • Management expects to deliver a positive Adjusted Ebitda of approximately EUR 275 million in 2023. This guidance includes additional investments in food and non-food adjacencies, wage costs inflation and reflects an uncertain macro-economic environment.
  • Management expects free cash flow before working capital to turn positive in mid-2024.
  • The long-term objectives for Just Eat Takeaway.com remain unchanged.
  • Management, together with its advisers, continues to actively explore the partial or full sale of Grubhub. There can be no certainty that any such strategic actions will be agreed or what the timing of such agreements will be. Further announcements will be made as and when appropriate.

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