Just Eat lifts 2023 core profit outlook

Just Eat, Europe’s biggest meal delivery company, raised its full-year core profit outlook on Wednesday, citing growth in Britain, Ireland and Northern Europe.

It forecast adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of about €310 million ($327.8 million) for 2023, up from its previous guidance of about €275 million.

Following a boom in food deliveries during the pandemic, the sector is seeking to transition to a rational profitability model even as they invest more in marketing to avert a churn in customers.

Just Eat returned to gross transaction value (GTV) growth in the third quarter in Northern Europe, which grew 6 per cent, and Britain and Ireland with a 4 per cent increase, but posted an 11 per cent drop in North America.

It expects its GTV, a common metric for ecommerce firms, to decline about 4 per cent this year, at the low end of its previous range of between -4 per cent to 2 per cent.

The company expects its free cash flow to break even in the second half of 2023 and stay positive thereafter. It had previously targeted positive free cash flow before working capital by mid-2024.

Just Eat also said it would launch a new share buyback programme of up to €150 million. – Reuters

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