Just Eat Takeaway.com’s first-half earnings beat analyst estimates as the European food delivery firm works at trimming costs and improving operational efficiency.
Adjusted earnings before interest, taxes, depreciation and amortisation came in 42 per cent higher at €203 million in the first six months of the year, the Amsterdam-based company said in a statement on Wednesday. That was above the €196.6 million average estimate from analysts in a Bloomberg survey.
Just Eat’s courier costs, which mainly include the cost of engaging workers through agencies and third-party delivery companies, decreased in the period. It reduced the cost per order by simplifying its delivery model in the UK, the company said in statement on Wednesday.
The company has been looking to boost orders by expanding its customer base through loyalty programmes and partnerships. It has also diversified into adjacent segments such as grocery, health and beauty in recent quarters.
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In June, the company entered a partnership with Amazon.com where Prime members could get fee-free Just Eat delivery on orders above €15 in Germany, Austria and Spain. Amazon raised its stake in Just Eat’s US unit Grubhub in May and expanded its partnership with the company to allow US users to order takeout within the retailer’s website and app.
Just Eat is currently exploring a partial or full sale of Grubhub, which is making “strong progress” toward cash flow breakeven, the company said.
The total value of orders placed on Just Eat’s platform came in at €13.2 billion in the first half, beating estimates. The northern Europe and UK and Ireland regions posted growth in gross transaction value during the period, while North America and southern Europe and ANZ regions declined.
Just Eat recently announced plans to end operations in New Zealand. It also intends to exit the French market. The company maintained its outlook for the year and announced a share buyback program of up to €150 million. - Bloomberg
