Just Eat Takeaway.com has reported a positive adjusted EBITDA for the first half of the year and announced the departure of its CFO. The meal delivery company made this announcement on Wednesday morning.
In the first six months of 2023, Just Eat Takeaway.com achieved an adjusted EBITDA of 143 million euros. This marks a significant improvement compared to a loss of 134 million euros in the first six months of the previous year. The company’s continued focus on enhancing meal delivery efficiency and cost-saving measures have played a pivotal role in this achievement.
“A majority of our orders come from Northern Europe, the UK, and Ireland, and the fact that these segments have shown growth in the second quarter is a significant milestone,” said CEO Jitse Groen. According to the CEO, the UK and Ireland division is moving steadily towards the high-profit margins seen in Northern Europe. “We are rapidly approaching our goal of achieving positive free cash flow.”
During the first half of the year, the meal delivery service processed 450 million orders, reflecting a 12 percent decline compared to the previous year.
In North America, where Just Eat receives the largest portion of its orders, there was a 15 percent decrease in orders. This decline can be attributed to the ongoing impact of the COVID-19 crisis, which still played a role in the first quarter of 2022, as well as a competitive market. However, the company did experience an improvement from the first quarter to the second quarter of 2023.
The gross transaction value also declined over the past half-year, at constant exchange rates, by 6 percent, amounting to 13.2 billion euros. In the second quarter, there was a 4 percent year-on-year decline.
The free cash flow improved from a negative 407 million euros to a negative 78 million euros over the past half-year.
Brent Wissink will step down as the Chief Financial Officer of Just Eat in May 2024. The meal delivery company has already initiated the search for a successor. Several activist investors had been pushing for Wissink’s departure due to their dissatisfaction with the acquisition of industry peer GrubHub in the United States.
When announcing the figures for the first quarter of 2023 in April, Just Eat Takeaway raised its outlook. The company now anticipates a positive adjusted EBITDA of approximately 275 million euros, compared to the initial forecast of 225 million euros at the beginning of the year. This outlook has been reaffirmed on Wednesday.
The gross transaction value is expected to decline by up to four percent or increase by up to two percent this year, according to the meal delivery company. The growth is projected to occur towards the end of the year. As for the free cash flow, the company aims to achieve a positive figure by mid-2024.
