Just Eat witnesses a decline in sales due to reduced consumer demand, yet holds steady on its financial projections for the year.
- The food delivery firm’s gross transaction value dropped by three percent to €6.34 billion in Q3, a decrease from €6.53 billion in the previous year.
- Despite setbacks, Just Eat reports a two percent increase in GTV, excluding North America, where a notable decline was observed.
- Southern Europe and Australia experience significant drops, yet Northern Europe and the UK remain strong, making up over half of total orders.
- CEO Jitse Groen emphasizes strategic advancements and operational efficiencies as key drivers for future growth.
Just Eat, a major food delivery enterprise, has reported a reduction in sales stemming from diminished consumer interest, impacting orders on a global scale. Despite this downturn, the company remains optimistic about meeting its annual financial targets. The firm’s gross transaction value (GTV) saw a subtle decline of three percent, amounting to €6.34 billion for the third quarter, compared to €6.53 billion during the same timeframe the previous year.
In a detailed update released by Just Eat, it was revealed that excluding North America, the company’s GTV actually showed an increase of two percent. North America itself encountered an 11 percent drop, contributing significantly to the overall decline.
The broader performance metrics indicated regional disparities, with Southern Europe and Australia facing a 12 percent slide in their GTV. However, Just Eat’s northern European markets along with the UK and Ireland divisions demonstrated resilience, currently constituting approximately 60 percent of the company’s total order volume.
The total order count decreased by six percent, standing at 211.1 million compared to 224.2 million in Q3 of the prior year. This reflects a substantial drop across all operational domains.
CEO Jitse Groen remains focused on Just Eat’s strategic goals, asserting: “We made good progress across our key strategic pillars, which we believe will drive growth.” He highlighted the company’s plans for diversification through establishing new partnerships outside traditional food delivery, extending into grocery, pharmacy, and wellness sectors within various regions.
Furthermore, Groen underscored the attainment of cost and operational efficiencies, allowing for enhanced investments while retaining a stable financial outlook. The CEO reassured stakeholders of their confidence in delivering the projected guidance for the complete fiscal year. Notably, Just Eat reaffirmed its projected currency-neutral GTV growth, excluding North America, within the range of two to six percent year-on-year, with anticipated adjusted EBITDA around €450 million.
The company has actively engaged in three share buyback programs over the past 18 months, acquiring shares worth €340 million to date.
Amid challenges, Just Eat continues to navigate towards growth through strategic diversification and operational efficiencies.
