Just Eat set for rise in profits driven by 'strong momentum' in UK and Ireland

28 February 2024 , 13:06

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Online food delivery giant Just Eat has pointed towards stronger earnings (Image: PA Media)

Just Eat says it expects to see a jump profits, driven by its "strong momentum" in the UK and Ireland.

Despite this, Just Eat shares dipped on Wednesday morning, which experts attribute to the absence of a share buyback. The food delivery giant reported a decline in transactions over the past year, with gross transaction value (GTV) falling by 6% to 26. 4 billion euros (£22.6 billion) in 2023 due to fewer customer orders.

Total orders decreased by 9% to 891 million, down from 984 million in the previous year. However, Just Eat noted a promising performance in the UK and Ireland, where order levels rose throughout the year.

Despite a 6% drop in total orders for the year, revenues fell by only 1% to 1. 31 billion (£1.12 billion) due to increased food prices. The group also reported a jump in core earnings in the region to 135 million (£115. 4 million) from 23 million (£19.7 million) the previous year, thanks to more efficient delivery processes.

Overall, the company's core adjusted earnings came in "ahead of guidance" at 324 million for the year. It has informed shareholders that it anticipates this figure to reach 450 million in 2024. Jitse Groen, the boss of the company, shared: "Our enhanced profitability resulted in reaching the critical milestone of returning to positive free cash flow in the second half of 2023."

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He also said he's really happy about how things are going in the UK and Ireland, with profits before tax and other costs getting close to the same good levels as in Northern Europe. Groen added: "Overall, the business is in a strong position to capture further improvement to our topline performance, adjusted ebitda and free cash flow in 2024."

Lawrence Matheson