(Bloomberg) — Just Eat Takeaway.com NV wrote down part of the value of its US-based Grubhub business and said orders slowed in the first half of the year after customers returned to restaurants and shops following Covid-19 lockdowns.
Total orders on its platform decreased 6.8% from the same period a year ago to 509.4 million, the Amsterdam-based food delivery company said in a statement on Wednesday.
That compares to 547 million orders forecast by analysts surveyed by Bloomberg. Sales rose to 2.78 billion euros ($2.8 billion), compared to analysts’ 2.85 billion-euro target.
Just Eat struggled in the first half of the year, announcing plans to eliminate staff in France and scale back growth plans.
Delivery companies industry wide have been grappling with slowing growth. Rival Deliveroo Plc cut its estimates for order growth this year and Gopuff said in July that it was closing warehouses and cutting jobs.
Key Insights
- Just Eat recorded a goodwill impairment of 3 billion euros related to its purchase of Grubhub last year because of a “reduction in sector valuation comparables” and the impact of higher interest rates and equity volatility.
- Just Eat is exploring a partnership or sale for Grubhub, which it bought last year for $7.3 billion.
It’s also looking for a bidder for its 33% stake in iFood.
- The company maintained its guidance for the year. It had previously pared its expectations for 2022 for gross transaction value to rise by mid-single digits percentage points year-on-year.
- The first-half loss on adjusted earnings before interest, taxes, depreciation and amortization narrowed to 134 million euros.
That compared to analysts’ average estimate for a 138.2 million-euro loss for the half, according to the Bloomberg survey.
- The company also nominated its chief operating officer Jorg Gerbig for reappointment following the results of an investigation.
The company announced in May that the COO would step down while a complaint about his behavior at a company event was probed.
- Chairman Adriaan Nuhn also didn’t seek reelection this year after shareholder proxy services criticized the board’s lack of gender diversity and governance.
- Amazon.com Inc.
announced a partnership with Just Eat’s Grubhub business last month where it will offer a delivery subscription to Prime users. As part of the deal, Amazon has the option to take a stake of as much as 15% of Just Eat’s US-based business.
- On Tuesday, the company launched a pilot in Berlin offering 20-minute delivery of grocery and convenience goods from a small urban warehouse known as a “dark store.”
Market Context
- Shares of Just Eat fell 2.4% in Amsterdam on Tuesday.
- The stock has declined 61% this year.
Get More
- Statement
- Just Eat Jumps on Amazon Deal to Take Stake in Grubhub Unit
- Just Eat Moves to Eliminate 350 Delivery Jobs in France
- Just Eat COO Under Misconduct Investigation, Chairman Exits
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