William Woods

Inquired about the sufficiency of price investments for market share growth, the reasons for confidence in the Brazilian consumer, and the outlook for inflation in H2.

Answer

The company stated their price investments have successfully stabilized volume market share and will continue. Confidence in Brazil stems from both improving macro conditions and strong performance of their own initiatives. They expect continued low, normalized food inflation in H2.

William Woods questioned if the price investments made are sufficient to not just stabilize but also improve market share. He also asked for more detail on the Brazilian consumer beyond stabilizing volumes that provides confidence in an inflection point. Lastly, he inquired if Carrefour is seeing evidence of inflation ticking upwards in H2 due to rising commodity prices.

Answer

Executive Alexandre Bompard confirmed that significant price investments in France have restored their price position to pre-inflation levels and have translated into improved NPS and stabilized volume market share. Regarding Brazil, he cited a combination of positive macroeconomic data (normalized food inflation, volumes) and the success of their own strategic initiatives across all formats. On inflation, he stated that Carrefour currently sees very low single-digit food inflation, which is a normalization, and expects this to continue in H2.

William Woods from Bernstein asked about the decline in take rates across most regions, questioning whether it was driven by a shift to marketplace, pressure from restaurants, or a mix shift towards QSR.

Answer

CEO Jitse Groen confirmed that the slight decrease in take rates was a result of a mix effect, influenced by the interplay between marketplace orders, restaurant fees, and the QSR segment.

William Woods from Bernstein asked about the trend in the business mix between marketplace and delivery orders throughout 2022.

Answer

CEO Jitse Groen responded that the mix has remained stable, with marketplace gaining a slight share from delivery. He also noted plans to expand the delivery network, particularly in the profitable Northern Europe segment, to support growth in food and non-food adjacencies.

William Woods of Bernstein asked if Just Eat Takeaway.com has considered or had discussions about being taken private, given the stock's low valuation and multiple levers for performance improvement.

Answer

CEO Jitse Groen acknowledged that the company has had discussions with private equity firms but confirmed there are no immediate plans to take the company private.

William Woods from Bernstein Autonomous LLP asked about the tripling of ancillary advertising revenues, questioning how much was driven by the inclusion of Grubhub and the company's future outlook for this revenue stream.

Answer

COO Jörg Gerbig detailed the components of this revenue, including promoted rankings, gift cards, and a 'stamp card' loyalty program used by over 20% of ex-U.S. restaurant partners. He also mentioned co-branding with FMCG partners and stated they see 'huge potential' to significantly grow this part of the business in the coming years.