The last year was a big game-changer for many companies. Food delivery startups witnessed commendable growth during the lockdown in 2020, and this is clearly indicated in Just Eat Takeaway.com’s Q4 2020 trading update. However, before we get to that, the company announced a big news that it no longer intends to delist its shares from Euronext Amsterdam “as soon as possible and it will remain listed at both the London Stock Exchange and Euronext Amsterdam until otherwise decided.”
Here’s the reason behind it.
Just Eat Takeaway will not be delisted from Euronext Amsterdam, for now
Back in August 2019, Just Eat Takeaway announced its intentions to get its shares delisted from Euronext Amsterdam. This was to be done as soon as possible under applicable Dutch law and the rules, regulations and announcements of Euronext Amsterdam. The delisting was expected to occur about 20 trading days after February 3, 2021, which would mark 12 months after the company’s listing and admission to trading of Just Eat Takeaway.com’s shares on the Premium Segment of the London Stock Exchange’s Main Market for listed securities.
However, back on June 10, 2020, the food delivery company announced its acquisition of Grubhub in an all-share transaction, which is set to complete in the first half of 2021. Since Grubhub Inc. is an American online food ordering and delivery platform, it falls under the rules of the U.S. Securities and Exchange Commission. Thus, Just Eat Takeaway is required to register and list in the U.S. the shares being offered to Grubhub shareholders.
Just Eat Takeaway has now announced its plans to delay any decision on the structure of its listing venues. This will result in its shares still being listed at both the London Stock Exchange and Euronext Amsterdam until stated otherwise.
Just Eat Takeaway’s Q4 2020 trading updates
Alongside the news of Just Eat Takeaway cancelling delisting of its shares, the company also announced its Q4 2020 trading updates. As per the media release, the company is investing in its most important countries to strengthen its position, which apparently led to accelerating growth both in Marketplace Orders as well as in its Delivery business, combined with notable financial performance.
“The fourth quarter of 2020 marks our third consecutive quarter of order growth acceleration. Our investment programme is very successful and has led to significant market share gains in most of our countries. The progress in the UK is particularly exciting; order growth of 58 per cent and we have increased our Delivery Orders nearly five-fold in the fourth quarter of 2020 compared with the same period in 2019,” says Jitse Groen, CEO of Just Eat Takeaway.com
“In 2021, we will continue to invest in price leadership, improving our service levels and expanding our offering to restaurants and consumers,” he adds.
The company increased its efforts in the Just Eat UK business by changing its marketing strategy and increasing marketing investments. Its UK sales force has also doubled over the previous year. Delivery Orders in the UK for the company surged a whopping 387 per cent in Q4 2020 compared with Q4 2019.
Just Eat Takeaway launched a new loyalty programme in Canada, which is expected to drive further growth. In Germany and the Netherlands, the company’s order growth is said to have grown exponentially as it witnessed over 12 million orders and ca. 4 million orders respectively in Q4 2020 compared with the same period last year. Orders in Rest of the World grew 47 per cent in Q4 2020 compared with the same period last year, with Australia (+166 per cent) in particular demonstrating outstanding performance.
For the full year 2020, the company’s management expects revenue growth of over 50 per cent with an adjusted EBITDA margin of approximately 10 per cent. The company will continue to invest heavily and prioritise market share over adjusted EBITDA. Just Eat Takeaway.com also invested €45M to implement measures to support restaurants, couriers, healthcare workers and charitable initiatives in 2020.