“British Spending Boosts Just Eat Amid Revenue Decline”
Britons’ willingness to spend on takeaways propelled Just Eat’s performance in the first half of the year, despite a decline in revenue due to challenges in North America and Southern Europe.
The takeaway giant reported a 1% drop in total revenue year-on-year for the first half of 2024, while earnings before interest, tax, depreciation, and amortization (EBITDA) surged by 42% to $92 million (£71.67 million). This increase was partly attributed to reduced delivery costs per order, facilitated by shifting all UK logistics to its own delivery platform in July.
The number of active consumers at Just Eat fell by 6% to 81 million, along with a decrease in average monthly order frequency. However, UK customers appeared to spend more per order, with revenue on a constant currency basis rising by 4% in the UK and Ireland. Overall, Northern Europe saw a 10% revenue increase, with the UK and Ireland segment accounting for 27% of total orders.
Conversely, the company faced difficulties in Southern Europe and North America. Revenue in Southern Europe dropped by 14%, due to a focus on profitability in highly competitive markets and underperformance in Israel. North American orders fell by 9% year-on-year, impacted by rising food prices and market competition.
Jitse Groen, CEO and founder of Just Eat Takeaway.com, remarked: “With growth in our partner base, expanded delivery coverage, and significant technological advancements, [transaction values] improved in the first half of 2024. We are on track to meet our full-year guidance.”
The company also saw growth in its grocery business, adding Morrisons to its portfolio and doubling the Sainsbury’s estate. Just Eat’s sales via grocery stores doubled year-on-year.
Looking forward, the company is considering the partial or full sale of Grubhub and continues to seek opportunities for revenue growth and optimization of its delivery network.
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“British Spending Boosts Just Eat Amid Revenue Decline”
Britons’ willingness to spend on takeaways propelled Just Eat’s performance in the first half of the year, despite a decline in revenue due to challenges in North America and Southern Europe.
The takeaway giant reported a 1% drop in total revenue year-on-year for the first half of 2024, while earnings before interest, tax, depreciation, and amortization (EBITDA) surged by 42% to $92 million (£71.67 million). This increase was partly attributed to reduced delivery costs per order, facilitated by shifting all UK logistics to its own delivery platform in July.
The number of active consumers at Just Eat fell by 6% to 81 million, along with a decrease in average monthly order frequency. However, UK customers appeared to spend more per order, with revenue on a constant currency basis rising by 4% in the UK and Ireland. Overall, Northern Europe saw a 10% revenue increase, with the UK and Ireland segment accounting for 27% of total orders.
Conversely, the company faced difficulties in Southern Europe and North America. Revenue in Southern Europe dropped by 14%, due to a focus on profitability in highly competitive markets and underperformance in Israel. North American orders fell by 9% year-on-year, impacted by rising food prices and market competition.
Jitse Groen, CEO and founder of Just Eat Takeaway.com, remarked: “With growth in our partner base, expanded delivery coverage, and significant technological advancements, [transaction values] improved in the first half of 2024. We are on track to meet our full-year guidance.”
The company also saw growth in its grocery business, adding Morrisons to its portfolio and doubling the Sainsbury’s estate. Just Eat’s sales via grocery stores doubled year-on-year.
Looking forward, the company is considering the partial or full sale of Grubhub and continues to seek opportunities for revenue growth and optimization of its delivery network.