Giles Thorne

Giles Thorne of Jefferies asked about the company's latest thinking on launching a subscription program in Europe and developing a dedicated FMCG advertising platform, given its growing scale in grocery.

Answer

CEO Jitse Groen responded that while a subscription model was launched in Canada, the logic is less compelling in Continental Europe where competitors lack scale. On advertising, he confirmed they have deals with major FMCG brands like Unilever and Heineken and are actively expanding their advertising platform's capabilities, viewing it as an interesting and growing revenue stream.

Giles Thorne of Jefferies asked if the company's plan to sell assets extends beyond iFood and Grubhub to other markets, specifically mentioning Italy and France, and requested color on the recent restructuring in France.

Answer

CFO Brent Wissink confirmed they continuously assess all countries. CEO Jitse Groen elaborated on France, explaining that the market shrank post-pandemic, necessitating a reevaluation of investments and a restructuring to focus on making its large marketplace business profitable. While an exit was not excluded, it was not deemed a necessity if profitability could be achieved.

Giles Thorne from Jefferies International Ltd. questioned if the company's stance on subscription models in Europe has changed, especially given competitors' focus on such programs and their expansion into markets like Germany.

Answer

CEO Jitse Groen stated that their view has not fundamentally changed, emphasizing the difficulty of entering markets with a strong incumbent. COO Jörg Gerbig added that the company already has a successful subscription program in the U.S. with around 3 million members and operates loyalty programs in most other markets. They are working to align these programs, which could include subscription elements in the future.