Yahoo Finance Just Eat Takeaway returns to profit thanks to cost cuts
Just Eat Takeaway.com (JET.L) has returned to profitability earlier than expected as cost cuts offset falling orders.
Europe's largest meal delivery company said it processed 235 million orders in the third quarter of 2022, an 11% drop on the year previously.
Gross transaction value (GTV), a common measure for e-commerce companies, ticked up 2% during the quarter amid higher prices, increasing by €6.92bn ($6bn/$6.8bn), which brings the nine-month total to €21.11bn.
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In the UK and Ireland, the company's largest market, orders fell by 15% and GTV dropped by 5%, against a strong comparative period, but the group said it achieved "material" improvements in profitability.
The company said it currently had a hiring freeze in place as the UK economy braces for a tough winter.
In its second-biggest market, North America, orders fell 13% while the GTV grew by 6%, as Grubhub's partnership with Amazon showed encouraging early results, it said.
Its stock has lost almost 70% of its value this year.
Chief executive officer, Jitse Groen, said: "After two years of significant investment following the merger and the pandemic, I am pleased that Just Eat Takeaway.com has returned to profitability earlier than anticipated.
"Driven by a wide range of initiatives, we continue to improve our operational efficiency whilst simultaneously enhancing the user experience and consumer proposition. Although the consumer backdrop will likely be challenging due to the macro-economic environment, Just Eat Takeaway.com owns many leadership positions of significant scale, is well-capitalised through the sale of the iFood stake and is therefore well-positioned to capture profitable future growth."
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Just Eat, which had anticipated an adjusted EBITDA loss in the second half, last month revised its forecast to positive and confirmed it also expects to make a profit in full-year 2023.
Just Eat also said it will hold an extraordinary general meeting on 18 November regarding the sale of its 33% stake in Brazilian food ordering app iFood to Prosus.
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