Just Eat Takeaway.com has reported a smaller-than-expected full-year core loss of €350 million, announcing plans to exit Norway and Portugal.
Analysts had forecast a loss before interest, taxes, depreciation and amortization (EBITDA) of €366 million for 2021, compared with an EBITDA profit of €363 million in the previous year. Revenue rose 34% to €5.33 billion.
'Progressing Towards Profitability'
“After a period of significant investment, and with adjusted EBITDA losses having peaked in the first half of 2021, the Company is now rapidly progressing towards profitability," commented Jitse Groen, chief executive.
The company, which recently signed delivery deals with Tesco and Asda, among others, reported figures as if it had owned its U.S. GrubHub subsidiary, which it bought for $7.3 billion in June, in both years.
Net loss was €1.04 billion, up from a loss of €151 million a year earlier. The company said it had €1.3 billion in cash on its balance sheet, as of December 31.
Improvement In EBITDA
"While the Northern European segment, with an adjusted EBITDA of €256 million in 2021, is the most profitable segment in the industry already, we also concluded the year with much improved adjusted EBITDA in our other operating segments. The team is working hard to make 2022 a successful year for both the company and all our stakeholders.”
The company said its cash position, intention to sell its stake in iFood in Brazil, which has been valued as worth more than €2 billion, and intention to 'seek a strategic partner' for GrubHub 'provide a solid foundation for the future'.
The company said Norway and Portugal, the countries it is leaving as of April 1, had generated EBITDA loss of about €10 million annually.
'To concentrate on leadership positions and profit pools, Just Eat Takeaway.com management intends to discontinue its operations in Norway and Portugal, anticipated to be effective as of 1 April 2022,' the company said.
Takeaway's shares have fallen 28% so far in 2022 and were down 3.5% at €34.60 on Tuesday, far below their all-time high above €109 hit in October 2020.