Toby Sterling

AMSTERDAM, (Reuters) – Europe’s biggest meal-delivery company, Just Eat Takeaway.com has lowered its expectations of growth for 2022. It reported Wednesday a decline in orders of 1% and stated that it is exploring the possibility of selling GrubHub (NYSE).

Takeaway, referring to the $7.3 billion purchase of the U.S.-based company last year said that it was actively exploring “the introduction of a strategic partnership into and/or partial or complete sale of Grubhub”.

The company also stated that they now expect “mid-single figure growth” in its Gross Transaction Value (GTV) for this year instead of last month’s “mid teens”.

GTV refers to the food order and delivery value.

264.1 million orders were handled by the company during its first quarter. This compares to an analyst estimate of 286million from JPMorgan (NYSE):

Jitsegroen, Chief Executive of the company stated that “Our priority in 2022 is… strengthening our businesses.” “We anticipate profitability improving throughout the year. We also expect to see positive adjusted EBITDA return in 2023.”

Takeaway suffered a $1 billion loss in 2021. This was due to re-ratings by loss-making technology firms and companies that were considered beneficiaries of COVID-19.

The shares have seen a two-thirds decline in value from an Oct 2020 peak of 100 euro. They closed on Tuesday at 26.10 Euros, just above the IPO price, 23 euros.

Since June, when GrubHub bought GrubHub, the mood has been sour in online food segments due to fierce competition.

Current prices put the company at 5.8 Billion Euros (or 6.3 Billion).

Cat Rock (6.68%) and other shareholders have called Groen for Grubhub’s demise.

It stated that it was going to concentrate on revenue growth per order, and cutting down costs at an operational level.

From negative 0.6-0.8%, it increased its full-year forecast for adjusted earnings prior to interest, taxes and depreciation marginally.

($1=0.9262 euros)