Yahoo Finance Just Eat sales surge higher as it closes on Takeaway.com merger
Just Eat has posted rapidly growing sales in the third quarter despite a backdrop of “softer consumer spending”.
The food delivery company saw sales jump 25% to £247.5 million in the three months to September, although this represented a slowdown from the prior half-year.
Revenues jumped as orders continued to rise, increasing 16% to 62 million across the group for the period.
The company said it has made progress with its recent turnaround plan to deliver “strong growth” across a number of markets.
In July, Just Eat announced plans to merge with Dutch delivery firm Takeaway.com in a £9 billion deal.
Just Eat said it expects a general meeting to be held in December where shareholders will get to vote on the deal.
The move is hoped to spark life into the takeaway delivery firm which has recently faced fierce competition from fast-growing rivals Deliveroo and Uber Eats.
Just Eat said it has witnessed a “structural shift” in the UK market with more customers opting for takeaways from fast-casual restaurant chains rather than independent takeaway restaurants, Just Eat’s core area.
However, the company hailed strong growth as orders in the UK increased by 8% to 33 million driven by “rapid growth in the delivery proposition”.
But Just Eat said this was offset by slower growth in its marketplace business and a difficult consumer backdrop and changing customer preferences.
Elsewhere, Just Eat said it delivered “very strong double-digit growth” in Canada as well as “strong performances” in Italy and Switzerland.
The company held firm on its expectations for the year, stating that it expects to hit its revenue target of between £1 billion and £1.1 billion as well as its underlying earnings target of £185 million and £205 million.
Peter Duffy, interim chief executive officer at Just Eat, said: “We are seeing strong growth in many of our markets, including Canada, Europe and pleasingly Australia, where we are starting to reap the benefits of our turnaround plan.
“Our UK marketplace business is a strong and clear leader; however, we are seeing a structural shift, with increasing demand on our platform from customers for broader cuisine choice and more meal occasions, led by quick service restaurant chains.
“The strong growth in our UK delivery business shows that we can successfully meet these needs.”
