Just Eat swings to profit despite fewer orders

Just Eat Takeaway.com swung to a first half profit as cost cutting initiatives offset falling order volumes. 

The group reported  earnings before nasties of €143million (£122million) for the first six months of the year, compared to a loss of €134million during the same period of 2022.

This was despite an 18 per cent fall in gross transaction value – or the average price of each order – to around €1.1billion, which Just Eat said was ‘primarily driven by lower order volume and foreign currency exchange movements’.

Just Eat told investors on Wednesday it was able to offset the decline via an ‘ongoing focus on efficiency in delivery operations’ and ‘general costs saving initiatives’. 

The group announced that earnings before interest tax, depreciation and amortisation of €143million (£122million) in the first half of 2023, against a loss of 134 million a year earlier

Europe’s biggest meal delivery company also announced that CFO Brent Wissink, who has been in the role since 2011, would be stepping down in May next year.

The Amsterdam-listed company said Wissink wished ‘to pursue other opportunities’ and the supervisory board would start the process of finding a successor.

Despite the overall decline, UK and Ireland GTV increased by 1 per cent on a constant currency basis in Just Eat’s UK and Ireland segment.

Jitse Groen, CEO and founder of Just Eat Takeaway.com said: ‘Since our IPO, our objective has been to build and extend large scale and sustainably profitable positions in our markets. 

‘With the majority of our Orders coming from Northern Europe and UK and Ireland, these two segments returning to growth in the second quarter of 2023 is a key milestone. 

‘Encouragingly, UK and Ireland is on its way to a similarly high profit margin as Northern Europe. The remainder of the business is also showing improving GTV growth and profitability trends, leading to the Company fast approaching its positive free cash flow target.’

During the early days of the pandemic, the food delivery sector felt an initial boom with shares in companies such as Just Eat reaching record levels.

However following a cost of living crisis, cash-strapped Britons have had to cut back on non-essentials such as takeaways which has led businesses to cuts costs in order to boosts profits.