Just Eat Takeaway.com, Europe's largest meal delivery company, has reported a 14% increase in orders in the fourth quarter in line with expectations and maintained its financial forecasts for 2022.
In a trading update, the company said that it had delivered 273.7 million orders in the fourth quarter of last year, up from 240.4 million in the same period of 2020.
Expecting Orders To Increase And Losses To Fall In 2022
Chief Executive Jitse Groen repeated that Takeaway expects orders to increase and losses to fall in 2022 but stopped short of forecasting that it will break even on an operating basis this year, unlike German rival Delivery Hero which said this week that it will do so in the second half.
"Not Targeting Profitability"
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"We're not targeting profitability, we've given out a slight loss range for this year," Groen said.
Takeaway has come under pressure from investors to sell operations, including US subsidiary Grubhub, to reduce its operating losses as the boost it received from increased orders during the COVID-19 pandemic has begun to fade.
Takeaway's shares have fallen 12% so far in 2022.
Bracing For Consolidation And More Competition
After rapid growth during the COVID-19 pandemic, European food delivery firms such as Takeaway, Deliveroo and Delivery Hero are bracing for consolidation and more competition from a new generation of fast grocery and delivery companies.
Loss Driven Will Be Investment In British Delivery Network
Groen said that losses will be driven by continued investment in its delivery network in Britain, where it owns Just Eat.
Groen said that the company is continuing to negotiate over the sale of its one-third stake in iFood, Brazil's largest meal delivery company.
On Grubhub, which has lost market share since Takeaway bought it for $7.3 billion in June last year, Groen said, "We are open to improvements...that can be a partner and it can be something else that improves that business."
Full-Year Earnings Report Due Date
Takeaway reports full-year earnings on March 2.