Just Eat posts wider-than-expected FY loss

Food delivery giant Just Eat Takeaway posted a wider-than-expected full-year loss on Wednesday despite seeing revenues increase due to increased spending levels.

Just Eat stated revenues increased roughly 4% to €5.6bn in 2022, in line with analysts' expectations,

However, while the group swung to an underlying earnings position of €19.0m, up from an underlying loss of €350.0m in the prior year, Just Eat reported an overall loss of €5.7bn, deeper than the €3.65bn expected by analysts.

Just Eat stated the full-year loss was principally the result of €4.6bn impairment on past equity-funded acquisitions and a book loss of €275.0m on the sale of its stake in iFood.

Orders dropped 9% to €984.0m, while gross transaction values were broadly stable at €28.2bn in 2022, driven by higher average transaction volumes and favourable foreign exchange rates.

Looking forward, Just Eat maintained its long-term targets and said it still expects to achieve underlying earnings of approximately €225.0m in 2023, with growth skewed toward the latter half of the year.

Just Eat also added that it was still actively exploring the possibility of offloading of its US-based Grubhub division.

As of 0835 GMT, Just Eat shares were down 5.53% at 1,708.90p.

Reporting by Iain Gilbert at Sharecast.com