Just Eat Takeaway Reports Strong H1 Profit Growth

Just Eat Takeaway, Europe’s largest food delivery company by revenue, reported a more than 40% increase in first-half core profit, primarily driven by its main European markets.

The company also announced a share buyback program, highlighting its focus on leveraging technology to reduce costs further.

Financial Performance:

For the first half of the year, Just Eat Takeaway posted adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of 203 million euros ($220 million), surpassing the consensus analyst forecast of 196 million euros.

The positive financial news led to a more than 10% rise in the company’s shares in early trading before gains moderated.

Regional Breakdown and Key Metrics:

In Northern Europe, the company saw a 5% increase in Gross Transaction Value (GTV), a key metric for the food delivery industry. GTV grew by 6% in Britain and Ireland, while adjusted EBITDA surged by 64%, driven by a shift to an in-house delivery platform.

Despite a challenging market in North America, where GTV fell by 9% due to fewer orders and increased competition, adjusted EBITDA in the region still rose by 57%, even under a fee cap in New York City that limits charges to restaurants.

Strategic Initiatives and Share Buyback:

The company reiterated its intention to sell all or part of its Grubhub unit in the United States, which it acquired in 2020 but has been seeking to divest since 2022. In Northern Europe, adjusted EBITDA fell by 3% as the company invested in expanding into new cities, enlarging delivery zones, and extending opening hours.

CEO Jitse Groen noted that the improvement in GTV was due to the growth of their partner base, expanded delivery coverage, and significant technological advancements. He also emphasized the company’s ongoing efforts to reduce costs, including using AI to streamline operations at its call center.