Just Eat raises profit guidance thanks to takeaway fiends in UK and Ireland
Take away delivery service Just Eat raised its profit guidance for the year to €310m (£269m) as the company continues to show signs of returning to growth in the UK, Ireland and Northern Europe.
The Netherlands based company reported a five per cent growth in gross transaction value (GTV) in the UK and Ireland, while in Northern Europe it grew six per cent.
Meanwhile, in its North American arm GTV fell 11 per cent.
“Within the UK and Ireland we continue to invest significantly whilst at the same time increasing profitability,” Jitse Groen, chief executive of Just Eat Takeaway.com, said in a statement.
“Although the recovery of North America is on a slower trajectory, we are satisfied that this segment too is rapidly becoming cash flow neutral.”
“As a result, we are in a position to upgrade both our Adjusted EBITDA and cash flow guidance and now expect to be approximately cash flow break-even in the second half of 2023 and positive thereafter,” he added.
Following the pandemic, the demand for food delivery services fell off as restaurants and high streets reopened.
In recent months, the company has engaged in a number of cost saving initiatives to shore up its balance sheet, as people shy away from ordering takeaways amid the cost of living crisis.
The company also announced a new €150m (£130m) share buy back programme which is set to be complete by the end of next September.
Just Eat stock rose 3.6 per cent in early trade following the update.