Just Eat Takeaway reports a decline in orders across all markets, affecting performance.
- The most significant drop was in Southern Europe, Australia, and New Zealand, down 14%.
- Overall orders fell by 6% to 211.1 million globally, despite some GTV growth.
- New partnerships in groceries, pharmacy, and wellness aim to stimulate growth.
- Operational efficiencies and cost reductions are positively impacting financial outlook.
In its latest trading update for the third quarter of 2024, Just Eat Takeaway has revealed a comprehensive decline in order numbers across all territories. The UK and Ireland, North America, and Northern Europe did not escape this downturn, with Southern Europe, Australia, and New Zealand experiencing a substantial decrease of 14%. Overall, there was a 6% drop in total orders, summing up to 211.1 million globally.
Despite the fall in orders, Just Eat Takeaway has reported an increase in gross transaction value (GTV) in pivotal regions like the UK, Ireland and Northern Europe. These areas make up about 60% of the company’s total orders, indicating their crucial importance to the firm’s broader strategy. We made good progress across our key strategic pillars, which we believe will drive growth, stated Jitse Groen, CEO of Just Eat Takeaway. In line with our strategy to diversify, several new partnerships were launched across adjacencies like grocery, pharmacy and wellness in many of our markets.
These strategic moves, alongside executing significant cost reductions and achieving operational efficiencies, appear to be yielding financial benefits. Confidence remains high in meeting the full-year guidance. The board has maintained its 2024 forecast for constant currency GTV growth — excluding North America — ranging from 2% to 6% year-on-year, with a projected adjusted EBITDA of approximately €450m.
Amidst these internal measures, the company has faced external challenges, notably in North America and Southern Europe, which have suppressed overall sales resulting in a slight revenue drop of under 1% in the UK and Ireland. To streamline operations, Just Eat Takeaway has engaged in aggressive cost-cutting, notably selling its stake in iFood and reducing its workforce by extinguishing nearly 2,000 jobs.
A notable turnaround in their hiring strategy saw the company shift from employed couriers to classifying most of them as independent contractors. This reclassification led to a reduction of 1,700 delivery jobs, aimed at minimising operational costs. Earlier in the year, the company decided to cease its delivery services in Paris, reflecting a strategic move catered towards better resource allocation and financial health.
Market confidence in Just Eat Takeaway wavered slightly, with shares dropping approximately 3% at the market opening on Wednesday, down to 1,002.2p and marking a decrease of one-sixth since the year’s onset. This comes while competitors like Deliveroo and Zapp have made notable financial recoveries, with Deliveroo posting its first-ever net profit and Zapp significantly reducing its losses.
Despite a challenging market environment, Just Eat Takeaway remains committed to strategic growth and fiscal responsibility.
