Just Eat has reported a three per cent decrease in gross transaction value (GTV) for the third quarter of 2024. However, the company remains committed to its fiscal projections.
Despite a global decline in orders, Just Eat is optimistic about achieving its full-year financial targets, driven by strategic partnerships and regional growth.
Just Eat recorded a three per cent decline in its total gross transaction value (GTV) for the third quarter of 2024, amounting to €6.34 billion (£5.3 billion). This marks a decrease from €6.53 billion (£5.46 billion) in the equivalent period of 2023. However, excluding North America, GTV actually increased by two per cent, indicating resilience in other regions.
The company’s performance varied significantly across different regions. In Southern Europe and Australia, GTV plummeted by 12 per cent, highlighting distinct challenges within these markets.
Conversely, northern Europe and the UK & Ireland division showed continued momentum, contributing approximately 60 per cent of total orders.
The overall number of Just Eat orders decreased by six per cent, dropping to 211.1 million.
This downturn contrasts with 224.2 million orders in the third quarter of 2023, reflecting a consistent decrease across all operational areas.
Despite the decline in order volume, Just Eat continues to focus on its strategic pillars to ensure future growth.
CEO Jitse Groen has emphasised the company’s strategic shift towards diversification, expanding into new sectors such as grocery, pharmacy, and wellness.
In addition, the company has forged several new partnerships to enhance its service offerings beyond food delivery, aiming for innovation and expansion.
These strategic efforts aim to hedge against declining order volumes and reinforce growth prospects.
Despite current market dynamics, Just Eat has reaffirmed its 2024 financial guidance, projecting constant currency GTV growth excluding North America between two and six per cent year-on-year.
The firm anticipates achieving an adjusted EBITDA of approximately €450 million (£376 million).
The continuation of share buyback programmes, totalling €340 million (£284.4 million), underscores confidence in financial stability and shareholder value.
Operational efficiencies have been enhanced, leading to increased investments while maintaining financial forecasts.
These efficiencies support the stability in projected growth and fiscal targets for the full year.
Just Eat’s capability to manage costs effectively has been vital in sustaining investment levels amidst challenging market conditions.
Just Eat remains positive about future growth, citing robust strategic planning and operational efficiencies.
The company is well-positioned to navigate market fluctuations and leverage its diverse portfolio to sustain growth.
Just Eat’s commitment to strategic diversification and operational efficiency positions it to achieve its year-end financial goals.
The company remains focused on leveraging new partnerships and market diversifications to foster growth.
