- Just Eat Takeaway.com Turns Profit in First Half Despite Decline in Order Volume
- Cost-Cutting Initiatives Compensate for Decrease in Gross Transaction Value
- CFO Brent Wissink to Step Down in 2019, UK and Ireland Segment Shows Encouraging Growth
Just Eat Takeaway.com turned a profit in the first half as cost-cutting initiatives compensated for a decline in order volume.
For the first six months of the year, the group reported earnings before nasties of €143million (£ 122 million), compared to a loss of €134million during the same period in 2022.
This was despite an 18% decline in gross transaction value, or the average price of each order, to approximately €1.1billion, which Just Eat stated was “primarily driven by lower order volume and foreign currency exchange movements.”
Wednesday, Just Eat informed investors that it was able to counterbalance the decline through its “ongoing focus on efficiency in delivery operations” and “general cost-cutting initiatives.”
The largest meal delivery company in Europe also announced that CFO Brent Wissink, who has held the position since 2011, will step down in May of 2019.
The company stated that Wissink intended to “pursue other opportunities” and that the supervisory board would begin the search for a successor.
Despite the overall decline, GTV in the UK and Ireland segment of Just Eat increased by 1% in constant currency terms.
Just Eat Takeaway.com’s CEO and founder, Jitse Groen, stated, “Since our IPO, our goal has been to develop and extend large-scale, sustainably profitable positions in our markets.
“Because the majority of our Orders come from Northern Europe and the United Kingdom and Ireland, their return to growth in the second quarter of 2023 is a significant milestone.
‘Encouragingly, the United Kingdom and Ireland are approaching a profit margin comparable to that of Northern Europe. The company is rapidly approaching its positive free cash flow target as the remainder of its business demonstrates improving GTV growth and profitability trends.
During the early days of the pandemic, the food delivery industry experienced an initial surge, with shares of companies like Just Eat reaching all-time highs.
However, as a result of a crisis in the cost of living, cash-strapped Britons have had to cut back on non-essentials such as deliveries, causing businesses to reduce expenses to increase profits.
