Just Eat Takeaway has posted encouraging results: its profit margin in Northern Europe finally reached the 5 % target, while sales in the Netherlands and Germany are rising again. To continue its expansion, the meal delivery company is now starting to deliver for cosmetics retailer Lush.
Margin target achieved
Overall, Just Eat Takeaway.com’s order volume fell by 4 % in the second quarter of 2023 (excluding exchange rate fluctuations). People are still ordering less than before, but CEO Jitse Groen is not worried. Rather, he is relieved that the delivery service is finally becoming more profitable.
In Northern Europe, the adjusted EBITDA reached 5.0 % of gross transaction volume (GTV) in the first half of the year, in line with the company’s long-term target margin. In the United Kingdom and Ireland, the margin was 1.8 %. Adjusted EBITDA reached 143 million euros, which is an improvement of 277 million euros compared to a year ago.
Entry into non-food
Profits are not easy to come by, and certainly not from the shrinking market of meal deliveries. Just Eat Takeaway therefore seeks profit in an expansion of its range of services. 40,000 supermarkets and grocery shops are already connected to the platform, 36 % more than last year. Especially in the UK and Ireland, Just Eat Takeaway delivers for a growing number of supermarkets.
The delivery service is also expanding into the non-food sector: German subsidiary Lieferando will start making deliveries for cosmetics retailer Lush. Advertising revenues rose to 99 million euros, excluding the US Grubhub division, up 33 % from the same period last year.
For the rest of the year, the company is now forecasting GTV growth of between – 4 and + 2 %, given the fall in orders, and EBITDA of around 275 million euros. CFO Brent Wissink is also stepping down in May 2024, so the search for a replacement has begun.