eatboss Today it insists that the food delivery giant’s losses have reached its peak, as it revealed that it was 486 million euros after tax in the first half of the year. loss Despite soaring Sales volume.
This Amsterdam——Headquarters company report income In the six months to July, it increased by 52% to 2.6 billion euros (2.2 billion pounds), compared to 1.8 billion euros (1.5 billion pounds) in the first half of 2020.
UK Orders increased by 76% to 135 million, which Just Eat said was “twice the absolute growth of competitors”, for example takeout And Uber Eats. The company saw triple-digit order growth in London.
Like Deliveroo, Just Eat has been hyped Marketing and expansion In recent months, including its famous Euro advertising campaign. Marketing expenses during the same period increased by 204% to 295 million euros, higher than the 97 million euros in the first half of last year.
Just Eat Takeaway.com was established in January 2020, when Takeaway.com completed a £6 billion merger with the British company Just Eat. In June, it completed a significant £5.75 billion acquisition of US competitor GrubHub, making it the largest food delivery service outside of China.
The company now has shares in New York, Amsterdam and London.
Just Eat is currently facing challenges in its main German market. In the United States, Grubhub’s orders in the first half of the year increased by 27% to 134 million.
The company stated today that “Just Eat Takeaway.com has reached the peak of absolute losses in the first half of 2021”.
It said: “The increase in profitability will be driven by business growth and scale expansion, flexibility brought about by the widening price gap, product and technology improvements, operational efficiency, and the upper limit of expenses that are expected to be partially reduced in the future.”
The company reiterated that it expects annual orders to grow by more than 45%, and the group’s total transaction volume is expected to reach 2.8 to 30 billion euros.
Bosses stated that the company is viewing its “developing” grocery products as a growth opportunity and hopes to sell its 33% stake in the Brazilian food delivery business iFood, in order to realize it with “appropriate offer.” Just Eat revealed that it has rejected a 2.3 billion euro takeover offer.
CEO Jitse Groen said: “In the first six months of this year, Just Eat Takeaway.com continued to invest heavily, mainly in Just Eat countries that have historically underinvested.
“Our consumer base, restaurant selection and order frequency have all increased substantially, which will lead to an increase in profitability in the future.”
Just Eat’s share price fell by more than 20% in 2021 and was criticized by activist shareholder Cat Rock Capital of the United States, which holds 4% of the shares. Last month Cat Rock called on Just Eat to explore “strategic options” to support prices.
It said that “seriously flawed communication” was the culprit for Just Eat’s “seriously underestimated”.
At that time, Just Eat told the Financial Times: “Just Eat Takeaway.com has regular dialogues with all its shareholders, and we take all their opinions very seriously.
“As previously announced, we will host a capital markets day in October to let the market know more about how we will take advantage of the exciting long-term growth opportunities we have throughout the business.”
The company’s shares rose 3.3% to 74.7 euros in early trading on Tuesday
