Just Eat Takeaway.com said on Wednesday that its half-year core result swung to a bigger than expected profit thanks to cost cuts, sending its shares up 8%, even as inflation-weary customers ordered fewer meals to their homes.
Europe's biggest meal delivery company also said Brent Wissink, chief financial officer would step down in May next year "to pursue other opportunities", while the supervisory board would start looking for a successor.
Grappling With Falling Orders
The food delivery sector, which had initially boomed from the pandemic stay-at-home economy, is grappling with falling orders as cash-strapped consumers cut back spending on non-essential products and services.
Just Eat, which has been cutting costs to boost its profitability, reported adjusted core earnings (EBITDA) of €143 million in the first half of 2023, against a loss of €134 million a year earlier.
"On EBITDA, JET has delivered a strong beat and has a run-rate tracking ahead of unchanged FY23 guidance," Jefferies analysts said in a research note.
Just Eat said the increase in earnings was driven by its ongoing focus on efficiency in delivery operations and general costs saving initiatives.
Bang In Line
The number of Just Eat's orders fell 12% to 450 million in the January-June period, which J.P.Morgan analysts said were "bang in line with market expectations".
The company reiterated its financial targets, including 2023 adjusted EBITDA of around €275 million.
Given the core profit beat, J.P.Morgan said investors would likely see this as "conservative"
Just East said it was still exploring a partial or full sale of its struggling US - unit Grubhub, although there was no certainty of a deal or a time frame.