Just Eat Takeaway.com has raised its 2023 adjusted core profit outlook, saying it continues to make good progress on delivery-led operational improvements.
Europe's biggest food delivery company expects adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of €275 million in 2023. In January, it had forecast adjusted EBITDA of €225 million.
Furthermore, the company said it expected its gross transaction value (GTV) growth to be in a range of -4% to +2% year-on-year in 2023.
"Just Eat Takeaway.com continues to recover from last year’s deceleration, with the Northern Europe and the UK and Ireland segments leading the trend," commented Jitse Groen, CEO of Just Eat Takeaway.com.
"While the year-on-year GTV decline in Q1 2023 is significant, the comparison is with the quarter with the second highest GTV of the pandemic."
Free Cash Flow
The Dutch-listed online delivery group expects free cash flow to turn positive in mid-2024.
The food delivery sector was one of the big beneficiaries of the COVID-19 pandemic, but that effect has waned as consumers, faced with surging prices, have started to cut back spending.
The firm reported total orders of 227.8 million in a first-quarter trading update, 14% below last year's level, and a GTV of €6.67 billion, down 8% year-on-year.
Read More: Just Eat Teams Up With Iceland For Rapid Grocery Delivery Service
Share Buyback Programme
Just Eat Takeaway has also launched a share buyback programme of up to €150 million to be completed by the end of the year, citing an improvement of future earnings per share and covering the company's obligations.
Since its IPO in 2016, Just Eat Takeaway's share price lost close to 30% of its original value.
Read More: European Food Delivery Shapes Up With Getir's Gorillas Buy
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