Just Eat Takeaway

Delivery platform adjusts growth forecast

Even Just Eat Takeaway, the parent company of Lieferando, is not immune to the consumer slump.
Imago / Dean Pictures
Even Just Eat Takeaway, the parent company of Lieferando, is not immune to the consumer slump.

Just Eat Takeaway expects weaker growth as a result of the consumer slump, but also a faster return to profitability.

Gross transaction value (GTV) is expected to increase only in the low single-digit percentage range in 2022 compared to the previous year, the company said. Gross transaction value is how Just Eat Takeaway measures the amount customers pay for all combined orders. Previously, management had set a target in the mid-single digits.

Investors more optimistic

At the same time, the company wants to get into the black more quickly. Adjusted operating profit (Ebitda) is expected to be positive as early as the second half of the year.

Until now, the Management Board around Group CEO Jitse Groen still expected to achieve an operating margin of minus 0.5 to minus 0.7 percent measured against gross transaction value in the current year. The more positive development was due to "further increases in profitability," it said.

Investors were pleased that the company is becoming more optimistic about earnings. Just-Eat-Takeaway shares jumped nearly 9 percent after the news broke.

Delivery Hero in similar situation

Delivery Hero, a delivery service that does not operate in the German market, recently published a similar forecast adjustment. Here, too, the total volume of all goods sold is now expected to grow more slowly in the current year, but the operating margin will be a little less negative.

Analysts had then speculated that Delivery Hero has to spend less money on discount promotions and advertising as a result of dwindling consumer spending, and for this reason profitability is rising, while at the same time fewer orders are being placed.

This text first appeared on www.lebensmittelzeitung.net.