Just Eat UK sees nearly 40% jump in 2024 core profits

Just Eat’s profits have improved as takeaway demand recovers

Ahead of expectations and banking on strong growth in its key British and Irish markets, Just Eat Takeaway has forecasted a nearly 40% jump in its 2024 core earnings, boosted by better delivery efficiency and simplified delivery operation.

While food delivery firms have been struggling through high customer churn rates and driver strikes, the demand seems to be recovering.

Using the earnings before interest, taxes, depreciation and amortisation (EBITDA) calculation, Just Eat has improved significantly to €135m in 2023 from €23m in 2022.

The group expects its gross transaction value to grow by 2% to 6% in 2024. Just Eat, which broke even on free cash flow in the second half of last year, expects its cash flow to stay positive in 20224 and beyond.

What Just Eat had to say

The company stated: “Our UK and Ireland segment, operating under the Just Eat brand, processed 245 million orders, which makes up 28% of Just Eat Takeaway’s total orders and €6.6bn GTV representing 25% total GTV in 2023. Order growth in the UK and Ireland segment improved throughout 2023. Year-on-year orders overall still declined by 6% compared with 2022, which can be partially attributed to lapping the pandemic in the first half of 2023. There is positive momentum in our grocery business as well."

Chief executive Jitse Groen said: “In 2023, we significantly improved our financial performance in all our segments and generated adjusted EBITDA of €324m compared with €19m in 2022. Our enhanced profitability resulted in reaching the critical milestone of returning to positive free cash flow in the second half of 2023. I am particularly pleased with the strong momentum in the UK and Ireland, with adjusted EBITDA margin rapidly approaching a similarly high level as northern Europe. Overall, the business is in a strong position to capture further improvement to our top-line performance, adjusted EBITDA and free cash flow in 2024.”

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