Last checked at 
(Alliance News) - Just Eat Takeaway.com on Wednesday said it is exploring a partial or full sale of its Grubhub US food delivery unit, which it had bought less than two years ago.
The takeaway delivery company said it and its advisers are exploring options for Grubhub. This could include introducing a "strategic partner" in order to sell a stake, or even all of its holding in Grubhub, which it agreed to purchase back in June 2020 for USD7.3 billion.
"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 added.
Also on Wednesday, the company said its fortunes at the start of 2022 stacked up well against the Covid-19 boosted first quarter of 2021, though it slightly tweaked annual guidance.
The company added that it expects profitability to "gradually" improve as the year progresses. The takeaway delivery company targets profit at an earnings before interest, tax, depreciation and amortisation level in 2023.
Just Eat Takeaway said it maintained "the high level of orders that were processed during the Covid-19 restrictions in the first quarter of last year".
Total orders for the first quarter of 2022 were 264.1 million, down 1.1% year-on-year from 267.1 million. However, gross transaction value increased 3.9% annually to EUR7.24 billion from EUR6.96 billion. The average transaction value was higher this time, the company said.
"While growth in the second quarter of 2022 will remain challenging, key growth drivers, such as average monthly order frequency and returning consumers are expected to remain above pre-pandemic and even above pandemic levels," Just Eat Takeaway said.
Order numbers increased 4% year-on-year in northern Europe, were flat in the UK & Ireland region, and fell 5% in North America. In the southern Europe & ANZ region, which includes markets such as Spain, Australia and New Zealand, orders were down 4%.
Going forward, Just Eat Takeaway.com said "enhancing profitability as one of its highest priorities in 2022".
It eyes lifting revenue per order, improving courier costs per order, and cutting overheads.
"Consequentially, management expects to reach positive adjusted Ebitda for the full year 2023," the company said.
For 2022, it lowered gross transaction value guidance. It expects gross transaction value to rise by mid-single digits. It had previously targeted growth in the "mid-teens".
The adjusted Ebitda margin is now expected to sit in the range of minus 0.5% to minus 0.7%. This is a slight improvement from previous guidance of minus 0.6% and minus 0.8%. In 2021, the adjusted Ebitda margin was minus 1.2%.
Just Eat Takeaway shares were up 1.2% early Wednesday.
Here is what you need to know at the London market open:
----------
MARKETS
----------
FTSE 100: marginally higher, up 0.58 point at 7,601.86
----------
Hang Seng: down 0.4% at 20,935.17
Nikkei 225: closed up 0.9% at 27,217.85
S&P/ASX 200: closed up 0.1% at 7,569.20
----------
DJIA: closed up 499.51 points, or 1.5%, at 34,911.20
S&P 500: closed up 70.52 points, or 1.6%, at 4,462.21
Nasdaq Composite: closed up 287.30 points, or 2.2%, at 13,619.66
----------
EUR: up at USD1.0810 (USD1.0785)
GBP: up at USD1.3036 (USD1.2997)
USD: down at JPY128.65 (JPY128.77)
Gold: down at USD1,940.40 per ounce (USD1,953.33)
Oil (Brent): up at USD108.38 a barrel (USD107.80)
(changes since previous London equities close)
----------
ECONOMICS AND GENERAL
----------
Wednesday's key economic events still to come
1100 CEST EU industrial production
1100 CEST EU foreign trade
0930 BST UK monthly card spending
0700 EDT US MBA weekly mortgage applications survey
1000 EDT US existing home sales
1030 EDT US EIA weekly petroleum status report
1400 EDT US Beige Book
----------
Ukraine said it had agreed with Russian forces to open a safe route Wednesday for civilians to flee the besieged port city of Mariupol. "Taking into account a catastrophic humanitarian situation in Mariupol, we'll be concentrating our efforts in this direction today," Ukraine's Deputy Prime Minister Iryna Vereshchuk wrote on Telegram. "We have managed to get a preliminary agreement on a humanitarian corridor for women, children and elderly persons," she said. Vereshchuk told civilians to gather at 2:00 pm local time for the evacuations heading to the Ukrainian-held city of Zaporizhzhia. Meanwhile, in a dramatic appeal, the Ukrainian commander of the remaining marines in Mariupol has asked for an evacuation to a third country. "The enemy outnumbers us 10 to 1," Serhiy Volyna, commander of Ukraine's 36th Marine Brigade, said in a one-minute video message posted to Facebook early Wednesday morning. "We appeal to all world leaders to help us." The Ukrainian side is defending only one site, the Azovstal Steel Works, where civilians are sheltering in addition to the military.
----------
BROKER RATING CHANGES
----------
RBC cuts abrdn price target to 185 (225) pence - 'underperform'
----------
Barclays raises HSBC price target to 735 (725) pence - 'overweight'
----------
COMPANIES - FTSE 100
----------
Building materials firm CRH reported a good start to 2022 with first-quarter sales, earnings and margins ahead of a year ago. Sales growth has been supported by improved activity levels and "continued execution" of its integrated solutions strategy. CRH expects sales, earnings before interest, tax, depreciation and amortisation, and margin for the first half of 2022 to be ahead of a year before, with the positive demand backdrop in North America to continue. "The continued delivery of our solutions strategy resulted in a good start to the year. Although a number of challenges and uncertainties continue, our demand backdrop remains favourable and absent any major dislocations in the macroeconomic environment, we expect first-half sales, Ebitda and margin to be ahead of the prior year period," said Chief Executive Albert Manifold.
----------
SSE Renewables has agreed to buy Siemens Gamesa Renewable Energy's existing European renewable energy development platform for EUR580 million. The portfolio includes 3.9 gigawatts of onshore wind development projects with scope for up to 1 gigawatts of additional co-located solar development opportunities. The deal is likely to complete by the end of September this year, subject to foreign direct investment and regulatory approvals. Around half the portfolio is located in Spain with the remainder across France, Italy and Greece - with power utility SSE noting the transaction marks its entry into southern Europe.
----------
Bunzl retained guidance after reporting first quarter revenue growth. The distribution and services firm said sales in the first quarter of 2022 were up 13%, while underlying revenue growth of 11% was mainly driven by inflation and continued momentum in the base business. "Overall, inflation remained particularly supportive to our businesses in North America, while the UK & Ireland and Continental Europe delivered very strong growth compared to the prior year due to inflation and recovery of the base business," said Bunzl. The firm maintained its guidance, expecting moderate revenue growth in 2022, driven by acquisitions and supported by a slight increase in organic revenue.
----------
COMPANIES - FTSE 250
----------
Consulting and engineering firm John Wood reported a narrowed annual loss and revealed Chief Executive Robin Watson intends to retire. Watson was appointed CEO in January 2016, having joined the board in 2013 as CEO of Wood's PSN division. The process to appoint his replacement will now commence, and Watson will remain in his role until the successor is in place. Turning to the results, John Wood posted revenue of USD6.40 billion for 2021, down 15% from USD7.56 billion in 2020. Pretax loss narrowed to USD80.6 million from USD148.6 million. The year was described as "challenging" amid the pandemic and pressures across end markets. Given its current level of debt, the company has decided against declaring any dividends for 2021. However, it will reviewing this policy in the future following the proposed sale of the Built Environment business. John Wood said it expects to announce a sale agreement for the unit in the second quarter. The company had launched a formal sales process for it back in January. Earlier this month, John Wood had delayed its 2021 results to complete the audit of the carrying value of its Aegis Poland contract.
----------
Defence technology firm QinetiQ said it expects annual results to be marginally ahead of both previous guidance and current market consensus. The company said order intake for the year to March 31 was "very strong" at more than GBP1.2 billion, and it expects to deliver organic revenue growth of 5% with an underlying operating profit of at least GBP135 million. For the 2021 financial year, QinetiQ delivered underlying operating profit of GBP151.8 million. "Our strong performance has been driven by significant growth in EMEA Services, partially offset by the slower recovery in Global Products," said QinetiQ.
----------
COMPANIES - SMALL CAP
----------
Gold miner Petropavlovsk said Moscow-based Gazprombank, which is on the UK sanctions list, has sent a notice demanding the repayment of loans. Gazprombank wants immediate repayment of USD201.0 million due under Petropavlovsk's committed term facility agreement with the bank and repayment by Tuesday next week of UD87.1 million due under the company's Russian subsidiaries' revolving credit facilities. "The company is considering the implications of these notices with its advisers," said Petropavlovsk.
----------
COMPANIES - GLOBAL
----------
Credit Suisse warned it expects to report a loss in its first quarter, as legal expenses and the war in Ukraine take a toll. The Zurich-headquartered bank said its first-quarter earnings will take a CHF600 million hit, around USD631 million, as it increases litigation provisions for historic legal matters. Its total provision for litigation in the quarter will be CHF700 million. All the legal matters are previously disclosed and originated more than a decade ago, it said. Credit Suisse also warned of a further CHF200 million hit from Russia's war in Ukraine. "With regard to our exposure to the impact of Russia’s invasion of Ukraine both on our counterparties and on our credit risks, our results will be adversely affected," it said. The company also confirmed a CHF350 million loss to come in the period from a decrease in the value of its 8.6% holding in Allfunds Group, as outlined in last month's annual report for 2021.
----------
Wednesday's shareholder meetings
Bunzl PLC - AGM
Hunting PLC - AGM
SThree PLC - AGM
----------
By Tom Waite; thomaslwaite@alliancenews.com
Copyright 2022 Alliance News Limited. All Rights Reserved.
