Just Eat returns to profit despite orders slump

Just Eat Takeaway.com has announced it has returned to profitability in Q3, reporting a positive adjusted EBITDA, despite reporting a marked decline in total orders.

While its return to profitability was materially ahead of prior guidance, total orders were down by 11%, falling from 265.8 million to 235.3 million in the quarter, while in the UK and Ireland, total orders fell by 15% to 62.8 million.

The group said this decline was largely caused by the end of Covid-19 restrictions and, to a lesser extent, by reducing the number of low contribution orders.

Nonetheless, gross transaction values (GTV) rose slightly by 2%, largely driven by a higher average transaction value and positive FX movements. In the UK and Ireland, GTV fell by 5% however. 

Overall, adjusted EBITDA improved in all segments in the quarter, both year-on-year as well as on a sequential basis. However, the market backdrop in the UK was said to be “less favourable” against a strong comparative period, though the UK and Ireland segment achieved further material improvements in profitability. 

Looking ahead, the group expects the company to maintain positive adjusted EBITDA in FY23, while the long-term objectives for the group are said to remain “unchanged”.

Jitse Groen, CEO of Just Eat Takeaway.com, said: “After two years of significant investment following the merger and the pandemic, I am pleased that Just Eat Takeaway.com has returned to profitability earlier than anticipated. Driven by a wide range of initiatives, we continue to improve our operational efficiency whilst simultaneously enhancing the user experience and consumer proposition. 

“Although the consumer backdrop will likely be challenging due to the macro-economic environment, Just Eat Takeaway.com owns many leadership positions of significant scale, is well-capitalised through the sale of the iFood stake and is therefore well-positioned to capture profitable future growth.”