The latest financial results from Just Eat reveal a decline in sales, reflecting challenges in the global market for online food delivery.
- In the third quarter of 2024, Just Eat’s total gross transaction value decreased by three per cent compared to the previous year.
- Despite a decline in orders, Just Eat remains optimistic, maintaining its full-year financial outlook.
- Regions such as Southern Europe and Australia faced significant challenges, with notable drops in order volume.
- Efforts towards diversification and operational efficiency continue as Just Eat expands into non-food sectors.
In the latest developments in the food delivery market, Just Eat has disclosed a decrease in its sales figures, attributed largely to a reduction in consumer demand across various regions worldwide. The total gross transaction value (GTV) for Just Eat fell by three per cent, reaching €6.34bn (£5.3bn) in the third quarter, a dip from €6.53bn (£5.46bn) recorded in the same period the previous year. This downturn has been particularly evident in regions such as Southern Europe and Australia, where a 12 per cent drop was observed.
Despite these challenges, there remains an air of optimism within Just Eat’s executive ranks, with CEO Jitse Groen asserting continued confidence in the company’s strategic direction. Groen has highlighted the firm’s commitment to pursuing growth through strategic pillars, including diversification beyond its traditional food delivery services. Notable new ventures include partnerships in the grocery, pharmacy, and wellness markets in various regions, aimed at capturing a broader slice of the consumer market.
Interestingly, while the global scenario presents a mixed picture, certain regions have shown resilience. Excluding North America, where the GTV decreased by 11 per cent, Just Eat actually noted a two per cent increase in the total GTV, underscoring areas of growth in its northern European sectors alongside the UK and Ireland operations. These regions now account for a substantial 60 per cent of the company’s total orders, despite an overall order volume reduction of six per cent to 211.1 million, down from 224.2 million in the corresponding quarter in 2023.
Just Eat is steadfast in its full-year projections for 2024, expecting a constant currency GTV growth excluding North America of between two and six per cent year-on-year. Additionally, the company anticipates adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) to reach approximately €450m (£376m). This is supported by the operational efficiencies and cost reductions that have been implemented, enabling increased investments without altering the fiscal outlook.
Aside from its operational strategies, Just Eat has engaged in substantial financial manoeuvres, repurchasing shares worth €340m (£284.4m) under three buyback programmes initiated over the last 18 months. These financial strategies align with the company’s efforts to maintain shareholder value amidst fluctuating market conditions.
In summary, Just Eat remains committed to its full-year objectives despite a challenging global market, focusing on strategic growth and financial stability.
