Just Eat has reported a decrease in sales due to reduced consumer demand.
- The company experienced a 3% decline in total gross transaction value (GTV).
- Notably, Southern Europe and Australia saw a 12% drop in GTV.
- Despite these challenges, Just Eat is optimistic about future growth and diversification.
- CEO Jitse Groen highlights strategic steps to maintain year-end financial projections.
Just Eat has witnessed a reduction in sales, which the company attributes to declining consumer demand globally. The firm’s total gross transaction value (GTV) for the third quarter of 2024 fell by three per cent to €6.34 billion (£5.3 billion), marking a decrease from the €6.53 billion (£5.46 billion) recorded in the previous year.
While North America’s performance showed an 11 per cent drop in GTV, there was a modest increase of two per cent in other regions. Conversely, regions like Southern Europe and Australia were hit harder, experiencing a substantial 12 per cent decline in GTV.
However, the company remains upbeat due to strong performance in Northern Europe, the UK, and Ireland, which collectively contribute to about 60 per cent of Just Eat’s total orders. While the overall number of orders decreased by six per cent to 211.1 million, these key regions helped stabilise the company’s outlook.
CEO Jitse Groen expressed optimism for future growth, emphasizing the firm’s commitment to diversifying its offerings beyond traditional food delivery. “We made good progress across our key strategic pillars, which we believe will drive growth,” said Groen, referencing new partnerships in grocery, pharmacy, and wellness sectors.
The company’s ongoing focus on cost efficiency and operational improvements has enabled increased investment while maintaining financial forecasts. Just Eat reaffirms its 2024 guidance, targeting GTV growth of two to six per cent year-on-year, excluding North America. Additionally, the company projects an EBITDA of approximately €450 million (£376 million), with significant share buybacks already in progress.
Despite a challenging sales environment, Just Eat remains on course to meet its annual financial targets through strategic initiatives and diversification.
