Just Eat, a key player in food delivery, notes an overall drop in sales for 2024.
- The firm experienced a 3% decrease in gross transaction value in Q3 2024.
- Southern Europe and Australia faced significant downturns, with a 12% decrease each.
- Despite challenges, Northern Europe and the UK markets showed promising growth.
- CEO Jitse Groen remains optimistic about strategic advancements.
In the third quarter of 2024, Just Eat recorded a three per cent decline in its total gross transaction value (GTV), decreasing to €6.34bn (£5.3bn) from the previous year’s €6.53bn (£5.46bn). This downturn is indicative of the waning consumer demand globally, affecting the company’s sales performance significantly.
Particularly notable is the 11 per cent decline in GTV from North America. However, when excluding North America’s underperformance, Just Eat’s GTV still managed a modest increase of two per cent. In contrast, Southern Europe and Australia exhibited more pronounced struggles, each registering a sharp 12 per cent drop in their GTV figures.
The reduction in consumer demand led to a six per cent fall in the overall number of orders, with figures dropping to 211.1 million from 224.2 million in Q3 of 2023. This downward trend pervaded all operational areas, yet Northern Europe and the UK maintained a steady performance, accounting for about 60 per cent of the company’s total orders.
Despite these challenges, CEO Jitse Groen expressed optimism, citing progress across key strategic initiatives. Groen remarked, “We made good progress across our key strategic pillars, which we believe will drive growth.” He also highlighted recent diversification efforts, including ventures into grocery, pharmacy, and wellness sectors, aimed at broadening the service offerings beyond traditional food delivery.
Operational efficiencies have enabled Just Eat to significantly invest while holding their optimistic outlook steady. The company has reaffirmed its projections for 2024, forecasting a constant currency GTV growth ranging from two to six per cent, excluding North America. Additionally, they anticipate an adjusted EBITDA of around €450m (£376m). The ongoing share buyback programmes underscore the firm’s strategic financial maneuvers, with shares worth €340m (£284.4m) repurchased over the last 18 months.
Despite facing a downturn, Just Eat anticipates meeting its end-of-year financial targets through strategic diversification and operational efficiency.
