Just Eat Takeaway.com N.V. (LSE: JET, AMS: TKWY, NASDAQ: GRUB), hereinafter the “Company” or together with its group companies, “Just Eat Takeaway.com”, one of the world’s largest online food delivery marketplaces, hereby issues a trading update for the second quarter of 2021.
We have combined Just Eat Takeaway.com and Grubhub into one of the largest online food delivery companies in the world. The new combination grew 51% in terms of orders in the first half year. Adjusted EBITDA losses, mainly caused by US and Canadian fee caps and our investment programme, have now peaked. We therefore expect the Company to trend back to profitability going forward while retaining significant growth during the second half of the year.Jitse Groen, CEO of Just Eat Takeaway.com
On 15 June 2021, Just Eat Takeaway.com successfully completed the acquisition of Grubhub in the United States. The combined business is one of the largest online food delivery marketplaces globally, with very significant growth opportunities in several of the largest profit pools in the world.
To aid comparability, this press release contains information about Just Eat Takeaway.com and Grubhub, on both a separate and pro forma combined basis. In addition, the Company has aligned its KPI definitions, which has led to replacing Gross Merchandise Value (GMV) with Gross Transaction Value (GTV) in the financial information presented.
• Given the success of the Company’s investment programme in the legacy Just Eat markets, expectations for 2021 have improved and management upgrades its previous guidance of more than 42% order growth for Just Eat Takeaway.com (excluding Grubhub) during 2021 to now more than 45% order growth for the full year.
• GTV for the full year 2021 for Just Eat Takeaway.com (including Grubhub) is expected to be in a range of €28 to €30 billion.
• The Company’s efforts in the historically under-invested legacy Just Eat markets have continued to drive growth and win online share. Just Eat gained online share in the UK, including a significant inflection in London with triple-digit order growth in the first half of 2021 compared with the first six months of 2020. Delivery order growth in the UK was 733% in the first half of 2021 compared with the same period in 2020.
• Just Eat Takeaway.com will continue to invest in growth and prioritise market share over adjusted EBITDA1 . Management believes that adjusted EBITDA losses peaked in the first half of 2021 and expects its adjusted EBITDA margin2 to improve going forward, driven by the removal of significant fee caps in the US and Canada, improved unit economics in the Company’s Delivery network and increasing benefits from the investment programme in the legacy Just Eat markets. As a result, for the full year 2021, management expects Just Eat Takeaway.com (including Grubhub) to generate an adjusted EBITDA margin in a range of minus 1% to minus 1.5% of GTV. This adjusted EBITDA margin includes the significant impact of fee caps and voluntary partner support of approximately €200 million in the US and Canada.
• As previously announced, Just Eat Takeaway.com intends to take a period of time to determine the optimal listing venues for the Company’s long-term future. Following the completion of the Grubhub transaction, this review is ongoing and no decisions on the structure of the Company’s listing venues are expected prior to FTSE Russell’s semi-annual review of assigned nationality in August 2021. Therefore, it is possible that Just Eat Takeaway.com will cease to be eligible for inclusion in the FTSE UK Index Series from the next review decision, expected to be announced on 1 September 2021.
• As of May, Just Eat Takeaway.com has been included in the S&P Europe 350 ESG Index, which is a testament to the Company’s ongoing and increasing focus on ESG matters and related disclosures.
1 Adjusted EBITDA is defined as operating income / loss for the period adjusted for depreciation, amortisation, impairments, share-based payments, acquisition and integration related expenses and other items not directly related to underlying operating performance