Farming & Food

JustEat reports €1.1bn loss despite bumper sales during lockdown

Amsterdam-based firm enjoyed a 33 per cent surge in revenues in 2021

In the UK and Ireland, sales jumped 63 per cent to €1.2 million. Photograph: Just Eat/PA Wire

Wed Mar 2 2022 - 17:44

Just Eat Takeaway. com has insisted it is on the path to profitability after heavy investment saw annual losses widen despite raking in a mammoth €5.3 billion in sales.

The fast food delivery giant reported pre-tax losses of €1.1 billion for 2021, against losses of €147 million in 2020.

But the Amsterdam-based firm enjoyed a 33 per cent surge in revenues over the year, on top of impressive growth in a pandemic-boosted 2020, when lockdowns forced people to eat at home.

It forecast that growth by gross transaction value (GTV) would be in the “mid-teens” in 2022 even as the effect of the pandemic fades.

READ MORE

In the UK and Ireland, sales jumped 63 per cent to €1.2 million as orders jumped 52 per cent, though the firm still swung to a €107 million loss as it spent on winning online share, ramped up marketing campaigns and cutting delivery fees to customers.

Chief executive Jitse Groen said: "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."

The group added it was also on the “clear path” to profit in the UK and Ireland after doubling orders in the past two years.

It also revealed plans to pull out of Portugal and Norway from April 1st.

It said operations in the countries are loss-making, with combined underlying annual losses of €10 million, and stressed the impact on revenues from the move is “immaterial”.

Just Eat added it remains in talks over a potential strategic partnership for its US business GrubHub, which it bought last June following regulatory clearance, as it looks to bolster its position in the market. - PA

LATEST STORIES