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Just Eat Takeaway posts 2022 operating profit despite drop in order volumes



© Reuters

By Scott Kanowsky — Just Eat Takeaway (AS:) swung to an operating profit in 2022 and projected further growth in the figure this year, despite a slide in orders caused by inflation-hit customers paring back spending on takeaways.

Adjusted earnings before interest, taxes, depreciation and amortization at the food delivery service came in at €19 million (€1=$1.0607), rebounding from a loss of €350M in 2021 and meeting a previous guidance issued in January.

Annual gross transaction value – a measure of the total value of purchases made on the platform – was €28.2B, unchanged compared to the prior year. Higher average transaction values and positive foreign exchange movements helped offset a 9% fall in total orders.

“We expect a further improvement to adjusted [earnings before interest, taxes, depreciation and amortization] in 2023 and our ambition to create a highly profitable food delivery business is firmly on track,” said Chief Executive Officer Jitse Groen in a statement.

The Amsterdam-based company backed its target for core income of approximately €225M in 2023, although growth is expected to be skewed towards the end of the year due to lower order volumes in the second half of 2022.

On a net basis, Just Eat fell to a worse-than-expected of €5.7B stemming from a series of impairment charges related to its acquisition of U.S. peer Grubhub and the sale of its stake in Brazil’s iFood.

Shares in the group fell in early European trading on Wednesday.

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