Just Eat Takeaway.com Reports Return To Profits In Half Year
Just Eat Takeaway.com has reported a return to profitability in its half-year core earnings, and it has been announced that the current Chief Financial Officer, Brent Wissink, will step down from his position in May next year.
Wissink expressed his desire “to pursue other opportunities,” and the supervisory board will begin the process of finding a suitable replacement.
During the first half of 2023, the Amsterdam-listed company recorded adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) of €143 million.
This is a significant improvement compared to the previous year when they incurred a loss of €134 million. Just Eat Takeaway.com has been implementing cost-cutting measures to enhance profitability, and the increased efficiency in delivery operations and overall cost-saving initiatives contributed to this positive performance.
The company highlighted that its Northern Europe and UK and Ireland businesses both experienced year-on-year Gross Transaction Value (GTV) growth in the second quarter, with a 4% increase in Northern Europe and a 1% rise in the UK and Ireland (3% at constant currency).
The CEO, Jitse Groen, noted that the return to growth for these segments is a crucial milestone for the company, and he expressed optimism about achieving similarly high-profit margins in the UK and Ireland as in Northern Europe.
The rest of the business is also showing improvements in GTV growth and profitability, bringing the company closer to its target of positive free cash flow.
However, the food delivery sector, which initially thrived during the pandemic stay-at-home economy, is now facing challenges due to declining orders.
Consumers are cutting back on non-essential spending, including food delivery, which has impacted companies in the industry. Just Eat Takeaway.com experienced a 12% decline in total orders during the January-June period, with the number dropping from 509 million to 450 million compared to the previous year.
Despite these challenges, Just Eat Takeaway.com has reiterated its financial objectives for the full year, indicating confidence in its ability to navigate the current market conditions and maintain its positive trajectory.