Just Eat Takeaway is struggling with declining orders in almost all of its markets, according to an interim report. In southern Europe, the number of orders fell by 18 percent in the first quarter, in the UK and Ireland by 11 percent, in North America by 17 percent and in Northern Europe by 10 percent.
Trade turnover even fell by 5 percent in March, and by 8 percent for the entire quarter, to 6.6 billion euros. JET does not give an explanation, but inflation and higher food prices will certainly be to blame. Consumers keep their hands on the cut.
Analysts had already taken into account weak order developments in both the UK and Ireland and North America in the first quarter. JPMorgan Research on Tuesday lowered the price target for the UK listing of Just Eat Takeaway from 18.32 to 14.91 pounds.
JET is not sure of the growth in trade turnover this year and expects a margin of -4 to + 2 percent, in addition to an EBITDA of 275 million euros. This result is also influenced by higher wages. Profit is expected in 2024 at the earliest.
The company also announced on Wednesday that it will buy its own shares. The announced share buyback comprises a maximum of 150 million euros thanks to the company’s ‘strong balance sheet’.
