What next for Just Eat Takeaway.com after it delivers strong growth in revenue

4 min read | March 10, 2021 03:57 AM PST | By Team Kalkine Media

What next for Just Eat Takeaway.com after it delivers strong growth in revenue

Financial highlights

The company created tailwinds for its business by completing merger between Just Eat and Takeaway.com just before pandemic had hit. The company raised significant investment which led to higher market share in fourth quarter of 2020.

Some highlights of the 2020 financial results are:

The company’s sales jumped 54 per cent to €2.40 billion in FY20.
It posted a net loss of €151 million in FY20 (FY19: €115 million), owing to non-recurring expenses and amortisation.
The share of delivery orders jumped to 26 per cent in FY20 from 18 per cent in FY19, driven by improved operational efficiency.
Total adjusted EBITDA rose 18 per cent in FY20 driven by growth across the Netherlands, Canada, and Germany.
Investments for iFood in Brazil provided a revenue growth of 222 per cent for 2020.
The FY20 revenue for the UK region was €725 million, up 42 per cent compared to the previous year (FY20 adjusted EBITDA: €216 million).
The company processed 179 million orders in FY20 for the UK region, representing a growth rate of 35 per cent over FY19.

In focus: 2021

The global food delivery platform expects a further acceleration in its total orders across the world for this year, driven by increased investments.

The food delivery firm has raised Just Eat Takeaway.com successfully raised €1.1 billion in February this year via a convertible bond offering.

For January and February, the UK orders were up 88 per cent as compared to the first two months of last year. The firm plans to raise its market share in Britain this year.

Expanding offices

The food delivery giant had announced last month that it was expanding offices in Amsterdam to attract top class talent. The staff outgrew current locations at Harry Banninkstraat and Oosterdoksstraat much before the outbreak. The firm has 27 offices across the world, including Amsterdam.

Competitors

Many of the Just Eat’s competitors are also following aggressive strategy to grab a bigger share of the growing online food delivery market. For instance, Deliveroo kick-started its IPO on 8 March which is likely to be valued at more than US $7 billion. Last week, Uber Eats (NYSE:UBER) began an offer of a 50 per cent discount to its customers for takeaway orders in a new deal.

In the meantime, last month, Grubhub had reported a loss of 41 cents per share for Q4 2020. Since then, its share (NYSE:GRUB) has been underperforming. Just Eat had announced last year that it would be buying Grubhub in a US $7.3 billion deal, making it the biggest food delivery company outside of China.

Stock performance

The company stock (LON:JET) was hovering at a value of GBX 6,972.00 in the early trading hours on Wednesday, 10 March, after the financial result was released, up 1.87 per cent as compared to the previous day’s close. It had a market capitalisation of £10.2 billion with an earnings per share (EPS) of -0.32 per cent.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.