Europe's biggest meal delivery company Just Eat Takeaway.com raised its full-year core profit outlook on Wednesday, citing growth in Britain, Ireland and Northern Europe.
It forecast adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of about €310 million for 2023, up from its previous guidance of about €275 million.
Following a boom in food deliveries during the pandemic, the sector is seeking to transition to a rational profitability model even as they invest more in marketing to avert a churn in customers.
Britain And Ireland
Just Eat returned to gross transaction value (GTV) growth in the third quarter in Northern Europe, which grew 6%, and Britain and Ireland with a 4% increase, but posted an 11% drop in North America.
It expects its GTV, a common metric for e-commerce firms, to decline about 4% this year, at the low end of its previous range of between -4% to +2%.
Share Buyback Programme
The company expects its free cash flow to break even in the second half of 2023 and stay positive thereafter. It had previously targeted positive free cash flow before working capital by mid-2024.
Just Eat also said it would launch a new share buyback programme of up to €150 million.
Just Eat Takeaway.com said in July its half-year core result swung to a bigger than expected profit thanks to cost cuts, sending its shares up 8%, even as inflation-weary customers ordered fewer meals to their homes.
Europe's biggest meal delivery company also said chief financial officer Brent Wissink would step down in May next year "to pursue other opportunities", while the supervisory board would start looking for a successor.
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 back spending on non-essential products and services.
Article by Reuters, additional reporting by Hospitality Ireland.