Updated February 28th, 2024 at 14:18 IST

Just Eat Takeaway forecasts nearly 40% increase in 2024 core profit

The company attributes this growth to the performance in its key British and Irish markets.

Reported by: Business Desk
Just Eat Takeaway forecasts nearly 40% increase in 2024 core profit | Image:Official Website
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Just Eat profits: Just Eat Takeaway, Europe's largest food delivery company, anticipates a nearly 40 per cent surge in its 2024 core earnings, surpassing expectations. The company attributes this growth to the performance in its key British and Irish markets, driven by improved delivery efficiency and streamlined operations.

Despite challenges in achieving stable profitability, Just Eat Takeaway and other food delivery firms are witnessing a recovery in demand. The sector is benefiting from increased order frequency through takeaway apps, supported by expanded offerings in grocery and retail categories.

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The company expects adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to reach approximately 450 million euros ($487 million) in 2024, exceeding analyst estimates of 398 million euros. In 2023, its adjusted EBITDA surged to 324 million euros from 19 million euros the previous year.

The company noted that the EBITDA margin in Britain and Ireland is rapidly approaching levels seen in Northern Europe, which contributes significantly to its earnings. Just Eat Takeaway also forecasts a 2 per cent to 6 per cent growth in gross transaction value in 2024, excluding North America, where it is exploring options for its Grubhub business.

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Having achieved breakeven on free cash flow in the second half of 2023, Just Eat Takeaway anticipates maintaining positive cash flow in 2024 and beyond.

(with Reuters inputs)

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Published February 28th, 2024 at 14:18 IST