Just Eat Takeaway.com’s earnings for the first half of the year exceeded financial analysts’ predictions as the Europe-based food delivery company focuses on cutting costs and enhancing operational efficiency. The firm registered adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) that were 42% higher at €203 million in the first six months of this year, as per the statement released by the Amsterdam-based company on Wednesday. This figure surpassed the average prediction of €196.6 million made by analysts in a Bloomberg survey.
The company experienced a decrease in courier expenses, primarily comprising the cost of employing workers through agencies and outsourcing companies. It managed to lessen this cost per order by streamlining its delivery system in the UK, as announced in a separate statement on Wednesday.
In the recent quarters, the company has entered new business segments such as grocery, health, and beauty to diversify its base and has been growing its customer base via loyalty programmes and various partnerships. Just Eat Takeaway.com established a collaboration with Amazon.com in June, entitling Prime members to free delivery for orders more than €15 in Germany, Austria, and Spain. Amazon increased its share in Just Eat’s US subsidiary, Grubhub, in May, expanding its partnership to enable US customers to order takeaway directly from the retail giant’s website and app.
Just Eat Takeaway.com is presently considering selling all or part of Grubhub, which is making significant steps towards achieving a cash flow breakeven, according to the company. The firm’s aggregate order value on their platform reached €13.2 billion in the first half, exceeding projections. Northern Europe along with the UK and Ireland regions saw an increase in gross transaction value during this period, while the North America, Southern Europe and ANZ regional markets witnessed a decline.
Recently, Just Eat Takeaway.com confirmed plans to cease operations in New Zealand and has plans to exit the French market as well. The company reiterated its annual outlook and declared a share repurchase programme worth up to €150 million.