Just Eat returns to profit but warns of 'challenging' consumer backdrop

Food delivery platform Just Eat Takeaway.com has returned to profitability in the third quarter of 2022, which the company said was ahead of schedule.

In a trading update, the group reported improved revenue per order, delivery costs per order and overheads.

As a result, Just Eat Takeaway.com posted positive earnings before interest, tax, depreciation and amortisation (EBITDA) for the third quarter, ahead of its guidance at the beginning of the year and on track towards its long-term target margins.

Adjusted EBITDA improved in all segments in Q3, both year-on-year as well as on a sequential basis. While the company said the market backdrop in the UK was less favourable against a strong comparative period, the UK and Ireland achieved further improvements in profitability.

Gross transaction value (GTV) was up 2% in Q3 compared with the same period in 2021, driven by a higher average transaction value. Just Eat Takeaway.com processed 235m orders in the quarter, representing a 11% decrease compared with the previous year, mainly due to the end of Covid-19 restrictions.

As a result, Just Eat updated its guidance for the year, with anticipated positive adjusted EBITDA in the second half of 2022, GTV to grow by low-single digits year-on-year, and positive adjusted EBITDA in 2023.

Jitse Groen, chief executive of Just Eat Takeaway.com, said: "After two years of significant investment following the merger and the pandemic, I am pleased that Just Eat Takeaway.com has returned to profitability earlier than anticipated.

"Although the consumer backdrop will likely be challenging due to the macro-economic environment, Just Eat Takeaway.com owns many leadership positions of significant scale, is well-capitalised through the sale of the iFood stake and is therefore well-positioned to capture profitable future growth."

The group confirmed that it was still exploring opportunities for a full or partial sale of Grubhub and is expected to complete the sale of its 33% stake in food ordering website iFood to technology investment group Prosus towards the end of November.

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