Annual Financial Report

Just Eat Takeaway.com N.V.
28 February 2024
 

Amsterdam, 28 February 2024

Full Year 2023 Results

·    Group excluding North America returned to GTV growth in 2023

·    2023 adjusted EBITDA[1] ahead of guidance at €324 million and growing quickly

·    Strong momentum in UK and Ireland with adjusted EBITDA margin rapidly approaching a similarly high level as Northern Europe

·    We reached the significant milestone of positive free cash flow[2] in H2 2023

·    To date, we have repurchased 7.3% of our issued shares

·    We issue new guidance for 2024

Jitse Groen, CEO of Just Eat Takeaway.com said: "In 2023, we significantly improved our financial performance in all our segments and generated adjusted EBITDA of €324 million compared with €19 million in 2022. Our enhanced profitability resulted in reaching the critical milestone of returning to positive free cash flow in the second half of 2023. I am particularly pleased with the strong momentum in the UK and Ireland, with adjusted EBITDA margin rapidly approaching a similarly high level as Northern Europe. Overall, the business is in a strong position to capture further improvement to our topline performance, adjusted EBITDA and free cash flow in 2024."

 

Group highlights[3]

 

●      The Group excluding North America returned to GTV growth in 2023. The year-on-year GTV trajectory improved throughout 2023. GTV for the Group including North America was €26.4 billion in 2023, down 4% on constant currency compared with 2022.

●      Revenue less adjusted order fulfilment costs[4] per order improved by 12% in 2023 compared with prior year. Improved processes and automation led to reduced costs per order, whilst improving customer and restaurant experience.

●      Adjusted EBITDA improved significantly to €324 million in 2023 from €19 million in 2022. All segments materially contributed to this improvement. As a result of the increased adjusted EBITDA, the Group reached the significant milestone of being free cash flow positive in H2 2023.

●      With cash and cash equivalents as per 31 December 2023 of €1,724 million and the Group having turned free cash flow positive in H2 2023, we are well-capitalised. We were able to use part of our strong liquidity to buy back shares and, under the share buyback programmes announced in April and October 2023, 7.3% of the issued shares were repurchased as per 23 February 2024.

Segment highlights3

 

●      The Northern Europe and the UK and Ireland segments exited 2023 at the highest ever quarterly GTV level.

●      In the Northern Europe segment, GTV increased gradually throughout 2023 which resulted in an increase of 3% to €7.7 billion. Northern Europe continued to demonstrate strong profit generation with an adjusted EBITDA of €366 million in 2023. The adjusted EBITDA margin in Northern Europe remained one of the industry's strongest and further improved to 4.8% of GTV in 2023 from 4.2% in 2022.

●      In the UK and Ireland segment, the improvement in year-on-year GTV performance was most pronounced, resulting in a GTV of €6.6 billion in 2023. Adjusted EBITDA improved significantly to €135 million in 2023 from €23 million in 2022, mainly due to enhanced delivery efficiency and simplification of our delivery operation. With the adjusted EBITDA margin increasing further to 2.0% of GTV in 2023 from 0.4% of GTV in 2022, UK and Ireland is rapidly approaching a similarly high adjusted EBITDA margin as Northern Europe.

●      In the Southern Europe and ANZ segment, operational improvements in logistics and more efficient customer services resulted in an improved adjusted EBITDA of minus €97 million in 2023 from minus €161 million in 2022.

●      North America significantly increased its adjusted EBITDA to €126 million in 2023 from €65 million in 2022. Under the new management, we are improving our cost base and competitiveness of Grubhub, including a continued push in new verticals. Grubhub too continues to make strong progress towards free cash flow breakeven.

Financials

 

●      Loss for the period on an IFRS basis was €1,846 million in 2023, driven by impairment losses of €1,539 million, mainly related to goodwill and other intangible assets from past equity funded acquisitions, and amortisation of €452 million, mainly related to the amortisation of consumer lists, technology platforms and development costs. Excluding the aforementioned impact of impairment losses and amortisation, profit for the period would have amounted to €145 million in 2023 compared with a loss of €652 million in 2022.

●      The €250 million convertible bond issued on 25 January 2019 was fully repaid in cash upon maturity on 25 January 2024, thereby reducing interest payments going forward.

Outlook

 

●      The Management Board issues the following guidance for 2024:

Constant currency GTV growth excluding North America in the range of 2% to 6% year-on-year

Adjusted EBITDA of approximately €450 million

Free cash flow (before changes in working capital[5]) to continue to be positive in 2024 and thereafter

●      Long-term target of group adjusted EBITDA margin in excess of 5% of GTV.

●      Management, together with its advisers, continues to actively explore the partial or full sale of Grubhub. There can be no certainty that any such strategic actions will be agreed or what the timing of such agreements will be. Further announcements will be made as and when appropriate.

 



 

Just Eat Takeaway.com N.V. (LSE: JET, AMS: TKWY), hereinafter the "Company", or together with its group companies "Just Eat Takeaway.com", one of the world's leading online food delivery companies, hereby reports its financial results for the full year 2023.

Performance highlights

Key Performance Indicators

2023

2022

Change

Constant currency

Partners (# thousands)1

699 

692 

1%


Active consumers (# millions)1

84 

90 

-6%


Returning active consumers as % of active consumers

66.6%

67.5%

-0.9p.p.


Average monthly order frequency (#)

2.8 

2.8 

-0.1


Orders (# millions)





North America

281 

327 

-14%


Northern Europe

273 

288 

-5%


UK and Ireland

245 

260 

-6%


Southern Europe and ANZ

92 

109 

-16%


Total orders

891 

984 

-9%

 

Average transaction value (€)

29.67 

28.66 

1.00 


GTV (€ billions)





North America

10.0 

11.6 

-14%

-11%

Northern Europe

7.7 

7.4 

4%

3%

UK and Ireland

6.6 

6.6 

1%

3%

Southern Europe and ANZ

2.2 

2.6 

-17%

-14%

Total GTV

26.4 

28.2 

-6%

-4%

1 Number as at 31 December


 

Key Financial Indicators (€ millions) 

2023

2022

Change

Constant currency

Revenue

-   




North America

2,141 

2,552 

-16%

-13%

Northern Europe

1,277 

1,155 

11%

10%

UK and Ireland

1,311 

1,319 

-1%

1%

Southern Europe and ANZ

438 

532 

-18%

-14%

Total revenue

5,167 

5,559 

-7%

-5%

Revenue less adjusted order fulfilment costs

2,390 

2,360 

1%


Adjusted EBITDA

-   




North America

126 

65 

93%


Northern Europe

366 

313 

17%


UK and Ireland

135 

23 

485%


Southern Europe and ANZ

(97)

(161)

40%


Head office

(207)

(221)

7%


Total adjusted EBITDA

324 

19 

1587%


 

Operations in Norway and Portugal were discontinued from 1 April 2022 and Romania from 1 June 2022. The Key Performance Indicators (KPIs) and Key Financial Indicators (KFIs) presented for the comparative period in 2022 exclude these operations as from 1 January 2022. These figures are unaudited and may not add up due to rounding. The percentages used are based on unrounded figures.

Refer to Appendix 1 for a 3-year summary of all our KPIs and KFIs and to Appendix 2 for a reconciliation of the KFIs from the most directly comparable IFRS measures. These alternative performance measures are not defined under IFRS. Reference is made to the Glossary as included in the Annual Report 2023 for an overview of defined terms.

Segment information

 

Our operations span four segments. These segments are: Northern Europe, United Kingdom and Ireland, North America, and Southern Europe and Australia and New Zealand (ANZ). Northern Europe comprises Austria, Belgium, Denmark, Germany, Luxembourg, Poland, Slovakia, Switzerland and the Netherlands. Southern Europe and ANZ comprises Australia, Bulgaria, France, Israel, Italy, New Zealand, and Spain. North America comprises Canada and the United States.

 

Northern Europe


 

Millions unless stated otherwise

2023

2022

Change

Orders (#)

273 

288 

-5%

GTV (€ billions)1

7.7 

7.4 

4%

Revenue (€)2

1,277 

1,155 

11%

Adjusted EBITDA (€)

366 

313 

17%

•     Adjusted EBITDA margin (%)

4.8%

4.2%

0.5pp

1 Change at constant currency level for GTV is 3%

2 Change at constant currency level for Revenue is 10%

 

In 2023, the Northern Europe markets together made up 31% of Just Eat Takeaway.com's total orders and 29% of the total GTV, with Germany being the largest market in terms of orders and GTV.

 

Performance in Northern Europe gradually improved throughout 2023 to reach positive year-on-year GTV growth in the second half of the year and achieved a full year GTV increase of 4% to €7.7 billion in 2023 from €7.4 billion in 2022. Orders in Northern Europe declined by 5% in 2023 compared with 2022, primarily attributable to the impact of the pandemic on the early prior year comparatives. Growth in GTV was mainly caused by higher ATV predominantly driven by higher food prices.

 

Northern Europe revenue grew by 11% to €1,277 million in 2023 from €1,155 million in 2022. Revenue growth was driven by higher ATV driven by higher food pricing, optimising our partner pricing and more demand for advertising from our partners.

 

Northern Europe adjusted EBITDA increased to €366 million in 2023 from €313 million in 2022. The adjusted EBITDA margin improved to 4.8% in 2023 from 4.2% in 2022. The improved adjusted EBITDA was mainly driven by optimised partner pricing, higher demand for advertising offering and targeted cost reduction programmes. Northern Europe remained the segment with the highest adjusted EBITDA margin within Just Eat Takeaway.com.

 

UK and Ireland

 

Millions unless stated otherwise

2023

2022

Change

Orders (#)

245 

260 

-6%

GTV (€ billions)1

6.6 

6.6 

1%

Revenue (€)2

1,311 

1,319 

-1%

Adjusted EBITDA (€)

135 

23 

485%

•     Adjusted EBITDA margin (%)

2.0%

0.4%

1.7pp

1 Change at constant currency level for GTV is 3%

2 Change at constant currency level for Revenue is 1%

 

Our UK and Ireland segment, operating under the Just Eat brand, processed 245 million orders which makes up 28% of Just Eat Takeaway.com's total orders and €6.6 billion GTV representing 25% total GTV in 2023.

 

Order growth in the UK and Ireland segment improved throughout 2023. Year-on-year orders overall still declined by 6% compared with 2022, which can be partially attributed to lapping the pandemic in the first half of 2023. There is positive momentum in our grocery business as well. Full year GTV improved significantly in the second half of 2023 and returned to growth, achieving a year-on-year increase of 1% at €6.6 billion. Growth in GTV was driven by higher ATV from higher food pricing, partly offset by unfavourable foreign exchange rate movements. On a constant currency basis, GTV grew by 3% in 2023 compared with 2022.

United Kingdom and Ireland revenue decreased by 1% to €1,311 million in 2023. The higher ATV was offset by the decrease in orders and unfavourable foreign exchange rate movements.

 

Adjusted EBITDA increased to €135 million in 2023 from €23 million in 2022 and the adjusted EBITDA margin improved to 2.0% in 2023 from 0.4% in 2022. The improved adjusted EBITDA was primarily driven by enhanced delivery efficiency and simplification of our delivery operation. As a result, the delivery cost per order notably reduced and additional efficiencies were achieved through streamlining our operations.

 

Southern Europe and ANZ

 

Millions unless stated otherwise

2023

2022

Change

Orders (#)

92 

109 

-16%

GTV (€ billions)1

2.2 

2.6 

-17%

Revenue (€)2

438 

532 

-18%

Adjusted EBITDA (€)

(97)

(161)

40%

•     Adjusted EBITDA margin (%)

-4.5%

-6.2%

1.7pp

1 Change at constant currency level for GTV is -14%

2 Change at constant currency level for Revenue is -14%

 

These markets together made up 10% of Just Eat Takeaway.com's total orders and 8% of the total GTV in 2023, with Australia being the largest market in this segment.

 

Orders for the Southern Europe and ANZ segment declined by 16% in 2023. This decline can be attributed to the impact of the pandemic, primarily in the first few months of 2022. In line with the order decline, GTV decreased by 17% to €2.2 billion in 2023 from €2.6 billion in 2022, primarily driven by lower order volume and foreign currency headwinds. The constant currency GTV decrease was 14% in 2023 compared with 2022.

 

Southern Europe and ANZ revenue declined by 18% to €438 million in 2023 from €532 million in 2022. This was mainly driven by a decline in ATV and orders as well as unfavourable foreign exchange rates.

 

Southern Europe and ANZ had an adjusted EBITDA of minus €97 million in 2023 compared with minus €161 million in 2022, and the adjusted EBITDA margin improved to minus 4.5% in 2023 from minus 6.2% in 2022. This improvement in adjusted EBITDA was mainly driven by actions taken to streamline operations, more efficient customer service as a result of better technology and improvement in marketing efficiency. In addition, we continue to focus capital and management attention towards our highest potential markets to generate scale, leadership positions and profit pools, as our industry rationalises.

 

North America

 

 

 

 


 

Millions unless stated otherwise

2023

2022

Change

Orders (#)

281 

327 

-14%

GTV (€ billions)1

10.0 

11.6 

-14%

Revenue (€)2

2,141 

2,552 

-16%

Adjusted EBITDA (€)

126 

65 

93%

•     Adjusted EBITDA margin (%)

1.3%

0.6%

0.7pp

1 Change at constant currency level for GTV is -11%

2 Change at constant currency level for Revenue is -13%

 

North America represented 32% of the total Just Eat Takeaway.com orders and 38% of the total GTV in 2023.

 

While constant currency GTV growth improved in the second half of 2023, the pandemic impact on the early prior year comparatives was still noticeable. North America's orders and GTV both decreased overall by 14% compared with 2022, to 281 million orders and €10.0 billion GTV. Year-on-year order growth increased in the second half of 2023 as we refocused on key operating pillars and invested behind the core business and new verticals. On a constant currency basis, GTV decreased by 11% in 2023 compared with 2022.

North America revenue decreased by 16% to €2,141 million due to a reduction in orders, investment in consumer pricing and unfavourable foreign exchange rates, partly offset by a higher ATV on constant currency basis due to higher food prices.

 

North America significantly improved its adjusted EBITDA to €126 million in 2023 from €65 million in 2022. Segment adjusted EBITDA as a percentage of GTV ('adjusted EBITDA margin') improved to 1.3% in 2023 from 0.6% in 2022. The improved adjusted EBITDA was largely attributed to efficient spending with lower marketing costs and continued optimisation in overheads.

 

Head office

 

Head office costs relate mostly to non-commercial expenses and include all central operating expenses such as staff costs and expenses for global support teams such as Legal and Compliance, InfoSec Risk and Control, Finance, Internal Audit, Human Resources and the Management Board.

 

Head office expenses were €207 million in 2023 compared with €221 million in 2022. The decrease in expense was primarily driven by continued optimisation in overheads partly offset by inflation-related cost adjustments.

CFO update and financial review

 

The financial information included in the CFO update and financial review is derived from the 2023 consolidated financial statements and 2022 comparative figures included therein. This section is reported on an IFRS basis.

 

Consolidated statement of profit or loss

 


Year ended 31 December

€ millions 

2023

2022

Revenue

5,167 

5,561 

Courier costs

(2,289)

(2,599)

Order processing costs

(507)

(571)

Staff costs

(1,191)

(1,259)

Other operating expenses

(1,075)

(1,377)

Depreciation, amortisation and impairments

(2,138)

(5,168)

Operating loss

(2,032)

(5,413)

Share of results of associates

-   

(35)

Finance income and expense, net

(48)

(47)

Other gains and losses

10 

(273)

Loss before income tax

(2,071)

(5,768)

Income tax benefit

225 

101 

Loss for the period

(1,846)

(5,667)

 

Revenue


Year ended 31 December

€ millions 

2023

2022

Order-driven revenue

4,933 

5,315 

Ancillary revenue

234 

246 

Revenue

5,167 

5,561 

 

Order-driven revenue decreased by 7% to €4,933 million in 2023 due to a 9% decrease in orders, partially offset by a higher ATV and increased promoted placement revenue earned on a per order basis, as well as a reduction in consumer vouchers and refunds issued.

 

Ancillary revenue decreased by 5% to €234 million in 2023 compared with €246 million in 2022, due to a slight reduction in subscription revenue. This was caused mainly by the partnership with Amazon in offering Prime members a free one-year Grubhub+ membership.

 

Order fulfilment costs


Year ended 31 December

€ millions 

2023

2022

Courier costs

2,289 

2,599 

Order processing costs

507 

571 

Order fulfilment costs

2,795 

3,170 

 

Courier costs, which mainly include the cost of engaging couriers through agencies and third-party delivery companies as well as salary and staff expenses of our employed couriers, decreased by 12% to €2,289 million in 2023 from €2,599 million in 2022. This decrease was driven by a reduction in both delivery orders of 9% and substantial improvements in delivery efficiency through our delivery network optimisation, order pooling, algorithm optimisation, and simplification of our delivery operations. These improvements offset courier wage inflation and impact of courier pay legislation resulting in lower courier costs per order.

 

Order processing costs decreased by 11% to €507 million in 2023 from €571 million in 2022, primarily driven by the decrease in orders, as well as efficiency gained in the costs per order.

Revenue less Order fulfilment costs


Year ended 31 December

€ millions 

2023

2022

Revenue

5,167 

5,561 

Order fulfilment costs

(2,795)

(3,170)

Revenue less order fulfilment costs

2,372 

2,391 

 

Revenue less order fulfilment costs slightly decreased to €2,372 million in 2023 compared with €2,391 million in 2022. The negative impact of the reduction in orders is partially offset by a higher ATV and lower costs per order driven by higher delivery efficiency.

 

Staff costs


Year ended 31 December

€ millions 

2023

2022

Wages and salaries

854 

900 

Social security charges

117 

125 

Pension premium contributions

46 

47 

Share-based payments

147 

166 

Temporary staff expenses

27 

22 

Staff costs

1,191 

1,259 

 

Staff costs decreased by 5% to €1,191 million in 2023 compared with €1,259 million in 2022. Our staff, excluding employed couriers as this group is included in order fulfilment costs, decreased by 15% to an average of approximately 13,500 FTEs in 2023 from an average of approximately 15,900 FTEs in 2022. This average FTE decrease was largely due to the Group restructuring activities and the hiring pause put in place during the second half of 2022 which had a full year effect in 2023 as well as ongoing optimisation and automation efforts pursued in 2023. Within 2023, FTEs remained broadly stable. The impact of the FTE decrease on staff costs was partially offset by staff wage inflation.

 

Share-based payments relate to the Long-Term Incentive Plan (LTIP) and the Short-Term Incentive Plan (STIP) for the Management Board, as well as the various long-term and short-term share (option) plans for employees (as described in Note 7 to the consolidated financial statements for the period ended 31 December 2023). Share-based payments decreased to €147 million in 2023 compared with €166 million in 2022, mainly driven by the decrease in average FTEs and the gradual completion of legacy and Grubhub rollover plans.

 

Other operating expenses


Year ended 31 December

€ millions 

2023

2022

Marketing expenses

588 

735 

Other operating expenses

487 

642 

Other operating expenses

1,075 

1,377 

 

Marketing expenses

Marketing expenditure can primarily be distinguished as relating to (i) performance marketing (or pay-per-click/pay-per-order) which directly generates traffic and orders, such as search engine marketing, app marketing and affiliate marketing (rewarding third parties for referrals to our platforms) and (ii) brand marketing, such as television, online media, and outdoor advertising (billboards).

 

In 2023, we continued our partnership with UEFA and launched a new global brand campaign with Christina Aguilera and Latto. Marketing expenses decreased by 20% to €588 million in 2023 compared with €735 million in 2022, primarily due to efficiencies in brand marketing spend as well as a reduction in performance marketing spend due to lower order volumes and costs per order spend optimisation.

 

Other operating expenses

Other operating expenses decreased by 24% to €487 million in 2023 compared with €642 million in 2022, mainly driven by measures taken to increase efficiency and automation in the business. Consequently, we achieved savings in relation to staff-related expenses and professional fees. These measures allowed us to effectively manage costs while maintaining a focus on operational efficiency, ultimately contributing to a reduction in overall expenditure.

 

Depreciation, amortisation and impairments

Depreciation and amortisation expenses were €599 million in 2023, up from €567 million in 2022 due to the amortisation of intangible assets, mainly consumer lists and development costs.

 

Total impairments of €1,539 million were recognised in 2023 for goodwill, other intangible assets and property and equipment. Following the annual impairment test and the identification of impairment indicators, impairment losses were mainly recognised in the amount of €1,060 million related to cash-generating unit (CGU) United States and €436 million to CGU Canada. The impairment in the United States and Canada was mainly driven by lower-than-expected order levels in the short-to-medium term resulting from market competitiveness. See also Note 11 to the consolidated financial statements for more details.

 

Share of results of associates and joint ventures

Movements in the share of results of associates and other gains and losses are mainly explained by the sale of our investment in iFood in 2022.

 

Income tax expense

In 2023, the net income tax benefit was €225 million, compared with €101 million in 2022. The taxable results of profitable entities resulted in a current tax expense of €30 million compared with €53 million in 2022, which included the impact of the Danish Tax authority dispute of €32 million. In 2023, the deferred tax benefit was €254 million compared with €154 million in 2022, mainly relating to temporary differences arising from the amortisation of other intangible assets and the recognition of available tax losses carried forward.

 

Loss for the period

As a result of the factors described above, Just Eat Takeaway.com realised a net loss after tax of €1,846 million in 2023 (2022: €5,667 million). The loss for the period excluding the impact of total impairments amounted to €307 million compared with €1,065 million in 2022.

 

Consolidated statement of financial position

 

€ millions 

31 December 2023

31 December 2022

Non-current assets

7,840 

9,742 

Current assets excluding cash and cash equivalents

607 

626 

Cash and cash equivalents

1,724 

2,020 

Total assets

10,172 

12,389 




Total shareholders' equity attributable to equity holders

6,044 

7,903 

Non-controlling interests

(7)

(8)

Total equity

6,036 

7,895 




Non-current liabilities

2,585 

3,085 

Current liabilities

1,550 

1,408 

Total liabilities

4,135 

4,494 

Total equity and liabilities

10,172 

12,389 

 

Non-current assets, mainly consisting of goodwill and other intangible assets decreased to €7,840 million as of 31 December 2023 from €9,742 million as of 31 December 2022. This was primarily driven by the impairment losses and amortisation of intangible assets.

 

Cash and cash equivalents increased to €1,724 million as of 31 December 2023, from €2,020 million as of 31 December 2022. This decrease was primarily driven by cash outflows from the share buyback programmes and capital expenditures.

 

Shareholders' equity decreased to €6,044 million as of 31 December 2023, from €7,903 million as of 31 December 2022, mainly due to accumulated losses over the period.

 

The solvency ratio, defined as total equity divided by total assets, was 59% as of 31 December 2023 compared with 64% at of 31 December 2022, the decrease was mainly caused by accumulated losses over the period.

 

Consolidated statement of cash flows


Year ended 31 December

€ millions 

2023

2022

Net cash generated by / (used in) operating activities

125 

(166)

Net cash (used in) / generated by investing activities

(136)

1,214 

Net cash used in financing activities

(278)

(365)

Net cash and cash equivalents (used) / generated

(290)

683 




Effects of exchange rate changes of cash held in foreign currencies

(6)

17 

Net (decrease) / increase in cash and cash equivalents

(296)

700 

 

Net cash generated by operating activities amounted to €125 million in 2023 compared with €166 million used in 2022. The increase was driven by improved operational performance and our focus on becoming profitable.

 

Net cash used in investing activities amounted to €136 million in 2023 mainly driven by continued capital expenditure, compared with net cash generated of €1,214 million in 2022 which included the proceeds from the disposal of iFood.

 

Net cash used in financing activities amounted to €278 million in 2023 driven by cash outflows from the share buyback programmes and lease payments, compared with net cash used of €365 million in 2022 which included the repayment of a bank loan.

Events after the reporting period

On 7 February 2024, the Supervisory Board announced the nomination of Mayte Oosterveld for appointment as new CFO and member of the Management Board at the AGM 2024.

Outlook

●      The Management Board issues the following guidance for 2024:

Constant currency GTV growth excluding North America to be in the range of 2% to 6% year-on-year

Adjusted EBITDA of approximately €450 million

Free cash flow (before changes in working capital) to continue to be positive in 2024 and thereafter

●      Long-term target of group adjusted EBITDA margin in excess of 5% of GTV.

●      Management, together with its advisers, continues to actively explore the partial or full sale of Grubhub. There can be no certainty that any such strategic actions will be agreed or what the timing of such agreements will be. Further announcements will be made as and when appropriate.

Principal risks

In conducting our business, we face risks that may interfere with the achievement of our business objectives. It is important to understand the nature of these risks. The principal risks published in the Company's 2022 Annual Report were reviewed by senior management and the Management Board through a series of one-on-one interviews and it was determined that the principal risks continued to apply throughout 2023, with the exception of one principal risk that was no longer deemed relevant in 2023 ("Integration and Transformation") and some minor wording changes made to this list. Any of these risks and events or circumstances described therein may have a material adverse effect on our business, financial condition, results of operations and reputation. The risks outlined in the 2023 Annual Report continue to apply in 2024. These risks are not the only ones that we face. Some risks may not yet be known to us and certain risks that we do not currently believe to be material could become material in the future.

In Control Statement by the Management Board

As recommended by Governance Rules and on the basis of the foregoing and the explanations contained in the section 'Risk Management', the Management Board confirms, to its knowledge, that:

·      Just Eat Takeaway.com's financial reporting over 2023 provides sufficient insights into any failings in the effectiveness of the internal risk management and control systems;

·      Just Eat Takeaway.com's internal risk management and control systems with regard to financial reporting risks provide a reasonable assurance that Just Eat Takeaway.com's financial reporting over 2023 does not contain any material errors;

·      Based on the current state of affairs, it is justified that the financial reporting over 2023 is prepared on a going concern basis; and

·      The report states those material risks and uncertainties that are relevant to the expectation of Just Eat Takeaway.com's continuity for the period of 12 months after the preparation of the report.

The Management Board, 28 February 2024

Jitse Groen, CEO
Brent Wissink, CFO

Jörg Gerbig, COO

Andrew Kenny, CCO

Investor Relations:
Joris Wilton
E:
IR@justeattakeaway.com

Media:
E:
press@justeattakeaway.com

 

For more information, please visit our corporate website: https://www.justeattakeaway.com/

About Just Eat Takeaway.com

 

Just Eat Takeaway.com (LSE: JET, AMS: TKWY) is one of the world's leading global online food delivery companies.

 

Headquartered in Amsterdam, the Company is focused on connecting consumers and Partners through its platforms. With 699,000 connected Partners, Just Eat Takeaway.com offers consumers a wide variety of choices from restaurants to retail.

 

Just Eat Takeaway.com has rapidly grown to become a leading online food delivery marketplace with operations in Australia, Austria, Belgium, Bulgaria, Canada, Denmark, France, Germany, Ireland, Israel, Italy, Luxembourg, New Zealand, Poland, Slovakia, Spain, Switzerland, the Netherlands, the United Kingdom and the United States.

 

Most recent information is available on our corporate website and follow us on LinkedIn and X.

Analyst and investor conference call and audio webcast

Jitse Groen, Brent Wissink, Jörg Gerbig and Andrew Kenny will host an analyst and investor conference call to discuss the full year 2023 results at 10:30 am CET on Wednesday 28 February 2024. Members of the investor community can follow the audio webcast on: https://www.justeattakeaway.com/investors/results-and-reports/ 

Media and wires call

Jitse Groen will host a media and wires call to discuss the full year 2023 results at 8:30 am CET on Wednesday 28 February 2024. Members of the press can join the conference call at +31 20 708 5073 or +44 (0)33 0551 0200.

Financial calendar

For more information, please visit https://www.justeattakeaway.com/investors/financial-calendar/

 

Additional information on https://www.justeattakeaway.com/

·      Just Eat Takeaway.com Analyst Presentation FY 2023

·      Our media kit including photos of the Management Board and industry-related photos for download

Market Abuse Regulation

This press release contains inside information (i) as meant in clause 7(1) of the Market Abuse Regulation and (ii) in terms of Article 7(1) of the Market Abuse Regulation as it forms part of UK law pursuant to the European Union (Withdrawal) Act 2018.

Auditor's involvement

The full year 2023 and 2022 information in the condensed financial statements is based on Just Eat Takeaway.com's 2023 consolidated financial statements, as included in the 2023 Annual Report (the 'Financial Statements'), which have been published on 28 February 2024. In accordance with article 2:395 of the Netherlands Civil Code, we state that our auditor, Deloitte Accountants B.V., has issued an unqualified opinion on the Financial Statements, dated 28 February 2024. For a better understanding of the company's financial position and results and of the scope of the audit of Deloitte Accountants B.V., this report should be read in conjunction with the Financial Statements. The general meeting has not yet adopted the Financial Statements.

Accounting Principles

The Financial Statements of the Company have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union ('IFRS') and comply with the financial reporting requirements included in Part 9 of Book 2 of the Dutch Civil Code.

Disclaimer

Statements included in this press release that are not historical facts (including any statements concerning investment objectives, other plans and objectives of management for future operations or economic performance, or assumptions or forecasts related thereto) are, or may be deemed to be, forward-looking statements. These forward-looking statements may be identified by the use of forward-looking terminology, including the terms "anticipates", "expects", "intends", "may" or "will" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. Forward-looking statements may and often do differ materially from actual results. Any forward-looking statements reflect the Company's current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Company's business, results of operations, financial position, liquidity, prospects, growth or strategies. Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser. Forward-looking statements reflect knowledge and information available at, and speak only as of, the date they are made, and the Company expressly disclaims any obligation or undertaking to update, review or revise any forward-looking statement contained in this press release. Readers are cautioned not to place undue reliance on such forward-looking statements.

No Offer or Solicitation

This document shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

Alternative Performance Measures

This document includes certain alternative performance measures. Just Eat Takeaway.com uses these alternative performance measures as key performance measures because it believes they facilitate operating performance comparisons from period to period by excluding potential differences primarily caused by variations in capital structures, tax positions, the impact of acquisitions and restructuring, the impact of depreciation and amortisation expense on its fixed assets and the impact of share-based payment expenses. These alternative performance measures are not measurements of Just Eat Takeaway's financial performance under IFRS and should not be considered as an alternative to performance measures derived in accordance with IFRS. They should be read in conjunction with Just Eat Takeaway.com's financial statements prepared in accordance with IFRS.

 



Condensed Consolidated Financial Statements

 

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Consolidated statement of profit or loss and other comprehensive income

for the year ended 31 December

€ millions 

2023

2022

Revenue

5,167 

5,561 

Courier costs

(2,289)

(2,599)

Order processing costs

(507)

(571)

Staff costs

(1,191)

(1,259)

Other operating expenses

(1,075)

(1,377)

Depreciation, amortisation and impairments

(2,138)

(5,168)

Operating loss

(2,032)

(5,413)

Share of results of associates

(35)

Finance income

50 

38 

Finance expense

(98)

(85)

Other gains and losses

10 

(273)

Loss before income tax

(2,071)

(5,768)

Income tax benefit

225 

101 

Loss for the period

(1,846)

(5,667)




Other comprehensive income



Items that may be reclassified subsequently to profit or loss:



Foreign currency translation gain related to foreign operations, net of tax

40 

153 

Equity-accounted investees - share of other comprehensive income

276 


Reclassification of foreign currency translation on loss of significant influence to profit or loss

(84)

Other comprehensive income for the period

40 

345 

Total comprehensive loss for the period

(1,806)

(5,322)




Loss attributable to:



Owners of the Company

(1,846)

(5,667)

Non-controlling interests

(0)




Total comprehensive loss attributable to:



Owners of the Company

(1,806)

(5,322)

Non-controlling interests

(0)




Loss per share (expressed in € per share)

 

 

Basic loss per share

(8.69)

(26.51)

Diluted loss per share

(8.69)

(26.51)

 

 

 

Consolidated statement of financial position

as at 31 December

€ millions 

2023

2022

Assets

 

 

Goodwill

2,812 

3,926 

Other intangible assets

4,489 

5,217 

Property and equipment

152 

200 

Right-of-use assets

288 

333 

Deferred tax assets

22 

Other non-current assets

77 

64 

Total non-current assets

7,840 

9,742 




Trade and other receivables

425 

433 

Other current assets

133 

136 

Current tax assets

30 

20 

Inventories

19 

37 

Cash and cash equivalents

1,724 

2,020 

Total current assets

2,331 

2,646 

Total assets

10,172 

12,389 




Equity and liabilities

 

 

Total shareholders' equity

6,044 

7,903 

Non-controlling interests

(7)

(8)

Total equity

6,036 

7,895 




Borrowings

1,772 

2,001 

Deferred tax liabilities

522 

750 

Lease liabilities

265 

311 

Provisions

27 

24 

Total non-current liabilities

2,585 

3,085 




Borrowings

254 

Lease liabilities

69 

64 

Provisions

51 

91 

Trade and other liabilities

1,163 

1,183 

Current tax liabilities

13 

66 

Total current liabilities

1,550 

1,408 

Total liabilities

4,135 

4,494 

Total equity and liabilities

10,172 

12,389 

 

 

Consolidated statement of changes in equity


Share capital

Share premium

Treasury shares

Foreign currency translation

Other legal reserves

 

Equity-settled share-based payments reserve

Equity component of convertible bonds

Accumulated deficits

Total shareholders' equity

Non-controlling interest

Total equity

€ millions




Legal reserves


Other reserves




13,450 

-   

373 

-   

 

188 

198 

(1,168)

13,050 

(8)

13,042 

-   

-   

-   

345 

-   


-   

-   

(5,667)

(5,322)

(0)

(5,322)

-   

-   

-   

-   

-   


-   

(3)

-   

(3)

-   

(3)

Share-based payments

158 

-   

-   

-   


(2)

-   

23 

179 

-   

179 

13,607 

-   

718 

-   

 

187 

195 

(6,813)

7,903 

(8)

7,895 

-   

-   

-   

40 

-   


-   

-   

(1,846)

(1,806)

(1,806)

-   

-   

-   

-   

20 


-   

-   

(20)

-   

-   

-   

-   

-   

(192)

-   

-   


-   

-   

-   

(192)

-   

(192)

-   

-   

-   

-   

-   


-   

(3)

-   

(3)

-   

(3)

Share-based payments

136 

-   

-   

-   


(13)

-   

18 

142 

-   

142 

13,743 

(192)

758 

20 


175 

192 

(8,660)

6,044 

(7)

6,036 

 


Consolidated statement of cash flows

for the year ended 31 December

€ millions 

2023

2022

Loss for the period

(1,846)

(5,667)

Adjustments:

 

 

Depreciation, amortisation and impairments

2,138 

5,168 

Share of results of associates

-   

35 

Loss on disposal of investment in associates

-   

275 

Equity-settled share-based payments

145 

166 

Finance income and expense recognised in profit or loss

48 

47 

Other adjustments

(8)

(1)

Income tax benefit recognised in profit or loss

(225)

(101)

 

252 

(78)

Changes in:

 

 

Inventories

18 

(4)

Trade and other receivables

(126)

Other current assets

(3)

27 

Other non-current assets

(11)

11 

Trade and other liabilities

(5)

85 

Provisions

(35)

(28)

Net cash generated by / (used in) operations

219 

(113)

Interest received

50 

Interest paid

(52)

(48)

Income taxes paid

(93)

(5)

Net cash generated by / (used in) operating activities

125 

(166)




Cash flows from investing activities 

 

 

Investment in other intangible assets

(107)

(93)

Investment in property and equipment

(45)

(108)

Acquisition of subsidiaries, net of cash acquired

Proceeds from sale of equity investments

17 

1,500 

Funding provided to associates

(88)

Other

(1)

Net cash (used in) / generated by investing activities

(136)

1,214 




Cash flows from financing activities 

 

 

Proceeds from issuance of ordinary shares

Share buyback

(192)

Principal element of lease payments

(65)

(54)

Repayments of borrowings

(300)

Taxes paid related to net settlement of share-based payment awards

(21)

(15)

Net cash used in financing activities

(278)

(365)




Net (decrease) / increase in cash and cash equivalents

(290)

683 




Cash and cash equivalents at beginning of year

2,020 

1,320 

Effects of exchange rate changes of cash held in foreign currencies

(6)

17 

Cash and cash equivalents at end of year

1,724 

2,020 

 



Appendix 1: 3-year KPIs and KFIs

The Grubhub business was consolidated from 15 June 2021. The 2021 figures are presented as if the combination was completed on 1 January 2021 to provide comparable information for the periods presented. Operations in Norway and Portugal were discontinued from 1 April 2022 and Romania from 1 June 2022. The 2022 figures presented exclude these operations as from 1 January 2022.

These combined figures are unaudited and may not add up due to rounding. Refer to Appendix 2 for reconciliations to the closest IFRS-based equivalent where applicable.

Millions unless stated otherwise

2023

2022

2021

Partners1 ('000)

699 

692 

634 

Active consumers1

84 

90 

99 

Returning active consumers as % of active consumers

66.6%

67.5%

67.4%

Average monthly order frequency (#)

2.8 

2.8 

2.9 

1 Number as at 31 December

 

 

 

 

Total orders (million)

2023

2022

2021

North America

281 

327 

374 

Northern Europe

273 

288 

296 

UK and Ireland

245 

260 

289 

Southern Europe and ANZ

92 

109 

128 

Total orders

891 

984 

1,086 

 

 

 

 

Average transaction value (€)

2023

2022

2021

North America

35.51 

35.54 

30.76 

Northern Europe

28.20 

25.80 

24.30 

UK and Ireland

26.95 

25.18 

23.01 

Southern Europe and ANZ

23.45 

23.91 

22.24 

ATV

29.67 

28.66 

25.94 





Total GTV (€ billion)

2023

2022

2021

North America

10.0 

11.6 

11.5 

Northern Europe

7.7 

7.4 

7.2 

UK and Ireland

6.6 

6.6 

6.6 

Southern Europe and ANZ

2.2 

2.6 

2.8 

Total GTV

26.4 

28.2 

28.2 

 

€ millions 

2023

2022

2021

Revenue

( -)



North America

2,141 

2,552 

2,470 

Northern Europe

1,277 

1,155 

1,064 

UK and Ireland

1,311 

1,319 

1,249 

Southern Europe and ANZ

438 

532 

548 

Total revenue

5,167 

5,559 

5,331 

Revenue less adjusted order fulfilment costs

2,390 

2,360 

1,898 

Adjusted EBITDA

( -)



North America

126 

65 

(28)

Northern Europe

366 

313 

256 

UK and Ireland

135 

23 

(107)

Southern Europe and ANZ

(97)

(161)

(262)

Head office

(207)

(221)

(208)

Total adjusted EBITDA

324 

19 

(350)

 

 

IFRS-basis

€ millions 

2023

2022

2021

Loss for the period

(1,846)

(5,667)

(1,044)

Cash and cash equivalents

1,724 

2,020 

1,320 

Appendix 2: Reconciliation of Alternative Performance Measures 

The tables below provide a reconciliation of alternative performance measures from the most directly comparable IFRS

measures.

 

The Grubhub business was consolidated from 15 June 2021. The 2021 figures are presented as if the combination was completed on 1 January 2021, to provide comparable information for the periods presented. This is referred to as 'Combined businesses' in the table below. Operations in Norway and Portugal were discontinued from 1 April 2022 and Romania from 1 June 2022. The 2022 figures are presented as if these operations were excluded as of 1 January 2022. This is referred to as 'Discontinued businesses' in the table below. There were no reconciling items for revenue and adjusted EBITDA for the year ended 31 December 2023.

 

These combined figures are unaudited and may not add up due to rounding. 

Combined revenue


2022

€ millions

North America

Northern Europe

UK and Ireland

Southern Europe and ANZ

Head Office

Consolidated

Revenue (IFRS)

2,552 

1,156 

1,319 

534 

-   

5,561 

Discontinued businesses

-   

(1)

-   

(2)

-   

(2)

Combined revenue

2,552 

1,155 

1,319 

532 

-   

5,559 

 








2021

€ millions

North America

Northern Europe

UK and Ireland

Southern Europe and ANZ

Head Office

Consolidated

Revenue (IFRS)

1,634 

1,064 

1,249 

548 

-   

4,495 

Combined businesses

836 

-   

-   

-   

-   

836 

Combined revenue

2,470 

1,064 

1,249 

548 

-   

5,331 

 

 

Combined adjusted EBITDA

Refer to Note 3 in the consolidated financial statements for a reconciliation of adjusted EBITDA to loss before income tax (IFRS).


2022

€ millions

North America

Northern Europe

UK and Ireland

Southern Europe and ANZ

Head Office

Consolidated

Adjusted EBITDA 

65 

312 

23 

(169)

(221)

10 

Discontinued businesses

-   

-   

-   

Combined adjusted EBITDA

65 

313 

23 

(161)

(221)

19 

 








2021

€ millions

North America

Northern Europe

UK and Ireland

Southern Europe and ANZ

Head Office

Consolidated

Adjusted EBITDA 

(11)

256 

(107)

(262)

(207)

(331)

Combined businesses

(17)

-   

-   

-   

(1)

(19)

Combined adjusted EBITDA

(28)

256 

(107)

(262)

(208)

(350)

 

Combined revenue less adjusted order fulfilment costs

€ millions

2023

2022

2021

Revenue less order fulfilment costs

2,372 

2,391 

1,558 

Discontinued businesses

-   

-   

Combined businesses

-   

-   

303 

Other items1

19 

(34)

37 

Combined revenue less adjusted order fulfilment costs

2,390 

2,360 

1,898 

1Other items include, amongst others, restructuring costs, certain legal, tax, and regulatory matters, and certain insurance income and costs

 



[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

[2] Free cash flow is defined as net cash used in operating activities less capital expenditure, lease payments and taxes paid on net settlement of share-based payment awards

[3] On a combined basis

[4] Revenue less order fulfilment costs, adjusted for other items as shown in Appendix 2

[5] Free cash flow before working capital excludes other changes in working capital, other non-current assets and provisions

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