Just Eat Takeaway.com NV, the prominent food delivery company, has updated its full-year forecast for 2023, reflecting a continued recovery from last year’s slump. The company now anticipates adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to reach approximately €275 million ($302 million), a significant increase from the previous estimation of €225 million. In addition, Just Eat expects to achieve positive free cash flow by mid-2024.
Ahead of Plan on Profitability Improvement
According to Jitse Groen, CEO of Just Eat Takeaway, the company’s efforts to enhance profitability are progressing faster than initially anticipated. This positive development comes despite a 14% decline in orders during the first quarter, amounting to 227.8 million, as reported by the Amsterdam-based firm.
Navigating the Post-Pandemic Market Landscape
The food delivery sector, which experienced explosive growth and investment during the COVID-19 lockdowns, has faced challenges in maintaining that momentum. In response, Just Eat announced last month that it would cut approximately 1,700 driver positions in the UK and adopt a gig-worker model, a strategy previously criticized by CEO Groen.
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Strategic Partnerships and Expansion
To further bolster its recovery and growth, Just Eat has forged partnerships with various businesses, including UK-based grocer J Sainsbury Plc, Turkish delivery startup Getir, and Domino’s Pizza Inc. These collaborations have the potential to diversify the company’s service offerings and strengthen its market presence.
Order Values and Future Growth Expectations
The total value of orders placed on Just Eat’s platform in the last quarter dipped to €6.67 billion euros, slightly below the average estimate of €6.91 billion. However, the company remains optimistic, projecting the total value of orders to grow between -4% and +2% year-on-year in 2023.
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Delivery-Led Operational Improvements
Just Eat Takeaway.com NV attributes its upgraded profit outlook to the successful implementation of delivery-led operational improvements, which have surpassed initial expectations. As Europe’s largest meal delivery company, Just Eat is well-positioned to continue its growth trajectory and leverage technology advancements to further enhance its services and profitability.
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Conclusion
In conclusion, Just Eat’s upgraded profit forecast demonstrates the company’s resilience and adaptability in the face of market challenges. Driven by technological advancements, delivery-led operational improvements, and strategic partnerships, Just Eat is successfully navigating the post-pandemic landscape. As Europe’s largest meal delivery company, Just Eat is well-equipped to leverage these strengths and continue on a path of growth and enhanced profitability.