Just Eat Takeaway sees 2023 core profit above its guidance By Reuters
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© Reuters. FILE PHOTO: A Just Eat delivery rider cycles through Manchester, Britain, August 23, 2023. REUTERS/Phil Noble/File Photo
(Reuters) -Just Eat Takeaway on Wednesday said it expects to report full-year adjusted core earnings above its previously announced target, after a best ever quarterly performance in Northern Europe, the UK and Ireland.
Food delivery firms are looking to shift to stable profitability after the sector boomed during the pandemic, even as they invest more in marketing to help retain customers.
Europe’s biggest meal delivery group sees 2023 adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of around 320 million euros ($347.6 million), compared to the forecast of about 310 million it gave in mid-October.
Gross transaction value (GTV), a common metric for food delivery companies, grew 4% in Northern Europe and 5% in the UK and Ireland in the fourth quarter, Just Eat said in a trading statement.
Full-year GTV also increased by 3% in both these markets, but fell by 11% in North America, where Just Eat is still exploring a partial or full sale of its Grubhub unit, it said.
Just Eat said its total GTV decreased by 4% in 2023, in line with its annual guidance.
“We have achieved a significant milestone with the Company now becoming free cash flow positive,” CEO Jitse Groen said.
Just Eat’s free cash flow was around break-even in the second half of 2023.
In mid-October, Just Eat said it expected to break even on free cash flow in the second half and keep it positive thereafter.
The company will report full 2023 results and provide an outlook for 2024 on Feb. 28.
($1 = 0.9206 euros)
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© Reuters. FILE PHOTO: A Just Eat delivery rider cycles through Manchester, Britain, August 23, 2023. REUTERS/Phil Noble/File Photo
(Reuters) -Just Eat Takeaway on Wednesday said it expects to report full-year adjusted core earnings above its previously announced target, after a best ever quarterly performance in Northern Europe, the UK and Ireland.
Food delivery firms are looking to shift to stable profitability after the sector boomed during the pandemic, even as they invest more in marketing to help retain customers.
Europe’s biggest meal delivery group sees 2023 adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of around 320 million euros ($347.6 million), compared to the forecast of about 310 million it gave in mid-October.
Gross transaction value (GTV), a common metric for food delivery companies, grew 4% in Northern Europe and 5% in the UK and Ireland in the fourth quarter, Just Eat said in a trading statement.
Full-year GTV also increased by 3% in both these markets, but fell by 11% in North America, where Just Eat is still exploring a partial or full sale of its Grubhub unit, it said.
Just Eat said its total GTV decreased by 4% in 2023, in line with its annual guidance.
“We have achieved a significant milestone with the Company now becoming free cash flow positive,” CEO Jitse Groen said.
Just Eat’s free cash flow was around break-even in the second half of 2023.
In mid-October, Just Eat said it expected to break even on free cash flow in the second half and keep it positive thereafter.
The company will report full 2023 results and provide an outlook for 2024 on Feb. 28.
($1 = 0.9206 euros)
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