Just Eat delivers 135 million UK orders but heavy marketing hits profits

Just Eat Takeaway.com processed 135 million UK orders in the first six months of 2021, a 76% increase on the same period last year.

Households ordered an average of 3.2 times a month, up from 2.5 times early last year when the first coronavirus lockdown began.

A further 8,000 restaurants joined the platform between January and June, bringing the total number in the UK to 58,000, including 90 new brands such as Leon and Le Pain Quotidien.

However, heavy investment in marketing, including sponsorship of UEFA Euro 2020, saw earnings before interest, tax, depreciation and amortisation (EBITDA) fall to minus €71m (-£60m), compared to a profit of €127m (£108m) in the first half of 2020.

In London, there was a triple-digit growth in orders placed, which the company said was driven both by marketing and partnerships with brands including McDonald's, Greggs, Pret A Manger, Itsu and Chipotle.

Total revenue in the UK grew by 82% to €552m (£471m), up from €303m (£258m) in the same period last year.

Just Eat Takeaway.com acquired its US rival Grubhub in a $7.3b deal in June.

Globally, the company saw revenue grow 52% to €2.6b (£2.2b) compared with €1.8b (£1.54b) in the first half of 2020. But it swung to an overall €190m (£162m) pre-tax loss, down from a €205m (£175m) profit last year.

Jitse Groen, chief executive of Just Eat Takeaway.com, said: "In the first six months of this year, Just Eat Takeaway.com continued to invest significantly, predominantly in the historically underinvested legacy Just Eat countries. Our consumer base, restaurant selection and order frequency have strongly increased, which will lead to improved profitability going forward."

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