Just Eat Reports Return To Profits In Half Year

By Reuters
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Just Eat Reports Return To Profits In Half Year

Just Eat has reported a return to profits in its half-year core earning, and said chief financial officer Brent Wissink is to step down in May next year.

The Amsterdam-listed company said Wissink wished "to pursue other opportunities" and the supervisory board would start the process of finding a successor.

First-Half Performance

Just Eat, which has been cutting costs as it faces pressures to boost profitability, posted adjusted earnings before interest tax, depreciation and amortisation (EBITDA) of €143 million in the first half of 2023, against a loss of €134 million a year earlier.

'Ongoing focus on efficiency in delivery operations as well as general costs saving initiatives were the main reasons for this increase,' it said.

It noted that its Northern Europe and UK and Ireland businesses returned to year-on-year Gross Transaction Value (GTV) growth of 4% and 1% (3% at constant currency) respectively in the second quarter.


"With the majority of our orders coming from Northern Europe and UK and Ireland, these two segments returning to growth in the second quarter of 2023 is a key milestone," said CEO Jitse Groen.

"Encouragingly, UK and Ireland is on its way to a similarly high profit margin as Northern Europe. The remainder of the business is also showing improving GTV growth and profitability trends, leading to the company fast approaching its positive free cash flow target."

Consumer Spend

The food delivery sector - which had initially boomed from the pandemic stay-at-home economy - is grappling with falling orders as cash-strapped consumers cut spending on non-essentials such as food delivered to their homes, prompting companies to cut costs in a bid to boost profits.

Just Eat's number of total orders fell 12% to 450 million in the January-June period, from 509 million a year earlier.


The company also reiterated its financial objectives for the full year.

Additional reporting by ESM

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