Just Eat raises earnings outlook as UK sales return to growth
The food delivery company said it is now expecting underling earnings of around 310 million euro (£269 million) in 2023.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Online food delivery giant Just Eat Takeaway.com has increased its earnings outlook once again after returning to sales growth across the UK and Ireland.
It reported a 4% rise in UK and Ireland sales by gross transaction value (GTV), up 5% on a constant currency basis, in the three months to the end of September, while it said the majority of its business also returned to growth, except for the US.
It saw an 18% plunge in GTV across North America, down 11% on constant currency, while the business spanning southern Europe, Australia and New Zealand also fell sharply, down 17%.
The Amsterdam-based group said the full-year GTV outturn will be at the bottom end of its previous guidance, down 4% on a constant currency basis, as the North American business continues to suffer tougher trading.
Order numbers also continue to fall, down 3% in the UK and Ireland and 7% overall, as customer demand for takeaways has pulled back sharply since the height of the pandemic.
The majority of our business has returned to GTV growth in the third quarter, with particular strong momentum in Northern Europe and the UK and Ireland segments
Despite this, Just Eat said it is now expecting underlying earnings of around 310 million euro (£269 million) in 2023, up from the 275 million euro (£239 million) previously guided for.
It had already increased its earnings outlook in April.
Just Eat Takeaway.com chief executive Jitse Groen said: “The majority of our business has returned to GTV growth in the third quarter, with particular strong momentum in Northern Europe and the UK and Ireland segments.
“Within the UK and Ireland we continue to invest significantly whilst at the same time increasing profitability.”
But he said the recovery of the North America division was on a “slower trajectory”.
Facing activist pressure, Just Eat has been forced to consider a sale of Grubhub – a US delivery company that it bought in 2021.
The group has also been slashing costs to offset the slowdown in takeaway demand as the boom seen during the pandemic fades.
In March, it announced plans to axe around 1,700 delivery driver jobs and 170 head office roles to make savings.
Just Eat, which employs around 15,000 workers globally, said at the time the cuts are part of a shake-up which will hit a service through which it employs its own couriers across several UK cities.