Adjusted EBITDA Improves, Profitability Expected to Continue Growing
- Just Eat Takeaway reports €3.5bn loss in H1 due to Grubhub acquisition impairment, interest rates and equity volatility
- Revenue grows 7% to €2.8bn (£2.3bn) and adjusted EBITDA up by 29%
- North America close to Adjusted EBITDA break-even despite fee caps in US and Canada
- UK and Ireland’s Adjusted EBITDA improves 70%, Brazil’s iFood sees 23% GTV growth
- Southern Europe, Australia, and New Zealand losses reduced by €39m
- CEO Jitse Groen: ‘Path to profitability is accelerating, Adjusted EBITDA positive in Q2 2022, group level in 2023’
- Just Eat exploring partial or full sale of Grubhub, monetizing iFood stake if appropriate offer made
Just Eat Takeaway has reported a loss of €3.5bn (£2.9bn) in the first half of 2022 due to an impairment of €3bn (£2.5bn) from the acquisition of US rival Grubhub in 2021, increasing interest rates, and equity volatility on technical valuation metrics. Despite these challenges, revenues grew by 7% to €2.8bn (£2.3bn), and adjusted EBITDA increased by 29%. The company expects profitability to continue improving going forward. North America was close to Adjusted EBITDA break-even despite fee caps in the US and Canada negatively impacting it by €73m (£61m). The UK and Ireland saw an improved Adjusted EBITDA of 70%, while Brazil’s iFood experienced a 23% GTV growth in H1 2022 and revenue growth of 28%. Southern Europe, Australia, and New Zealand witnessed notable reduction in losses. CEO Jitse Groen stated that the path to profitability is accelerating, with Adjusted EBITDA positive in Q2 2022 and a group level in 2023. Just Eat Takeaway continues to explore partial or full sale of Grubhub and monetizing its 33% stake in iFood if an appropriate offer is made.
Factuality Level: 9
Factuality Justification: The article provides accurate and objective information about Just Eat Takeaway’s financial performance, including losses from the Grubhub acquisition, growth in various regions, and future expectations for profitability. It also includes quotes from the CEO to support the company’s outlook.
Noise Level: 4
Noise Justification: The article provides relevant information about Just Eat Takeaway’s financial performance and future outlook, with some details on the impact of acquisitions and market conditions. It also includes quotes from the CEO to support the company’s perspective. However, it could benefit from more analysis or context on the broader food delivery industry trends and potential long-term implications.
Financial Relevance: Yes
Financial Markets Impacted: Just Eat Takeaway’s stock price may be impacted by the loss announcement and potential sale of Grubhub or iFood stake.
Financial Rating Justification: The article discusses financial results, profitability expectations, and potential asset sales which can affect the company’s performance and stock value.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
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