Just Eat Takeaway reports a 6% global decline in orders, affecting all markets.
- Despite a fall in orders, Gross Transaction Value (GTV) has seen slight growth in key areas.
- New partnerships in grocery, pharmacy, and wellness sectors are being explored to foster growth.
- Cost reductions and operational efficiencies have been implemented to maintain financial guidance.
- Shares have dropped 3% amid these developments, continuing a year-long downward trend.
In a recent trading update, Just Eat Takeaway disclosed a significant 6% decline in orders globally, affecting all its markets including the UK and Ireland, North America, northern Europe, and most sharply in southern Europe and Australia and New Zealand where orders plummeted by 14%. This drop in orders has raised concerns about the company’s performance and market position.
Despite the reduction in order volume, the company reported a slight increase in Gross Transaction Value (GTV) within its key markets—specifically the UK, Ireland, and Northern Europe, which cumulatively account for approximately 60% of its total orders. This has indicated that while the number of transactions has decreased, the value per order has seen an uptick, suggesting a shift in consumer purchasing behaviour.
Jitse Groen, CEO of Just Eat Takeaway, expressed optimism by stating, “We made good progress across our key strategic pillars, which we believe will drive growth.” His comments underline the company’s efforts to diversify through various new partnerships in adjacencies like grocery, pharmacy, and wellness across different markets, potentially opening avenues for revenue.
The company has been active in improving cost efficiency and operational capabilities, which Groen notes have allowed them to increase investments while maintaining financial projections. According to the board, the company is “well on track to deliver our guidance for the full year” with an expected constant currency GTV growth excluding North America of between 2% and 6%.
The financial stance remains cautious as the company forecasts an adjusted EBITDA of around €450 million. This comes after a series of cost-reduction strategies, including selling its stake in South American-based firm iFood and cutting nearly 2,000 jobs, reflecting a robust attempt to manage expenses and streamline operations.
In the face of these changes, Just Eat Takeaway shares have experienced a 3% drop as of market opening on Wednesday, trading at 1,002.2p. This decline is part of a larger trend where the stock has fallen by one-sixth since the year’s start, indicating investor wariness amidst the company’s strategic shifts.
Amidst evolving market dynamics and strategic realignments, Just Eat Takeaway is striving to stabilise its operations and achieve financial targets for the year.
