Skip to Content
Morningstar

Just Eat Takeaway Sheds More Light on Free Cash Flow Bridge

Fiscal 2022 results had total orders down 9%, and gross transaction value.

""
Securities In This Article
Just Eat Takeaway.com NV
(TKWY)

Just Eat Takeaway TKWY reported fiscal 2022 results with total orders down 9%, and gross transaction value, or GTV, flat (down 5% at constant currency) broadly in line with our estimates as we reported back in January when the company released its fourth-quarter trading update. Regionally, Southern Europe, Australia, and New Zealand was the main detractor with orders and GTV down 15% and 8%, respectively, which was partially offset by the rest of the group (Northern Europe GTV up 3%, North America GTV up 1% aided by currency, down 9% at constant currency, U.K. and Ireland down 1%, down 2% at constant currency). Order declines were broadly expected due to tough comparables and a lower number of low-contribution orders, while GTV growth is the product of higher average order values (restaurants passing on inflation and Just Eat reducing the number of low-value orders) as well as positive currency effects. On guidance, management reiterated its outlook for fiscal 2023 (no specific GTV or order growth guidance was given, but management said growth should be skewed toward the end of the year given soft comps from last year) with adjusted EBITDA expected to be about EUR 225 million, a number that includes “investments in food and nonfood adjacencies and wage costs inflation, and takes into account the uncertain macroeconomic environment.” Regarding top-line growth, on the call, management said that it feels comfortable with consensus (FactSet consensus points to about 5% revenue growth in fiscal 2023). Although we do expect to adjust our 2023 top-line growth (revenue growth to 5% versus 15% in our model) and EBITDA (to EUR 225 million versus EUR 3 million in our model) estimates, we don’t expect to materially change our EUR 81 fair value estimate as our midterm and long-term value drivers remain intact. Shares trade deep in the 5-star territory.

The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.

More in Stocks

About the Author

Ioannis Pontikis, CFA

Director of Equity Research in Europe
More from Author

Ioannis Pontikis, CFA, is a Director of Equity Research in Europe for Morningstar, where he covers European grocers and global food and beverage companies like Tesco, Unilever, Nestle, and Danone, and manages a team of eight analysts across the Financials and Consumer sectors. He also leads Morningstar’s Equity Research Valuation Committee, advancing the firm's valuation methodology through significant projects such as developing new methodologies, refining our valuation model, and enhancing the efficacy of our ratings.

Before joining Morningstar in 2017, Pontikis spent six years on the buy-side, co-managing a $100M long/short equity fund and leading teams in applying machine learning to stock and equity factor selection models. He developed the fund's valuation and risk assessment framework, achieving strong risk-adjusted performance. Prior to this, Pontikis worked at Nestle S.A. in Athens, focusing on financial reporting, budgeting, and auditing proposals to improve processes.

Pontikis research has appeared in numerous media outlets including Bloomberg, CNBC, Reuters, Guardian, Frankfurter Allgemeine Zeitung among others.

Pontikis holds a bachelor’s degree in business administration from the University of Piraeus’s and a master’s degree in accounting and finance from the London School of Economics. He also holds the Chartered Financial Analyst® designation and studying towards an advanced post-masters degree in portfolio and risk management.

Sponsor Center