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Just Eat Takeaway Reports Robust Profit Growth and Announces Share Buyback

Just Eat Takeaway, Europe’s largest food delivery service by revenue, reported a significant increase in its first-half core profit on Wednesday, driven by strong performance in its main European markets. The company also unveiled a share buyback program and highlighted its ongoing focus on leveraging technology to enhance cost efficiency.

Profit and Financial Performance

The company’s half-year adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) surged by over 40% to €203 million ($220 million), exceeding analysts’ consensus forecast of €196 million. This robust performance led to a notable rise in shares, which initially jumped more than 10% before slightly retracting.

Regional Performance Highlights

In Northern Europe, the company saw a 5% increase in gross transaction value (GTV), a key metric for food delivery firms. GTV grew by 6% in the UK and Ireland. However, the North American market experienced a 9% decline in GTV, attributed to fewer orders and heightened competition.

The adjusted EBITDA in the UK and Ireland soared by 64%, a result of transitioning to an in-house delivery platform. North American adjusted EBITDA also rose by 57%, despite a fee cap in New York City limiting delivery charges to restaurants.

Conversely, Northern Europe’s adjusted EBITDA fell by 3% due to investments in expanding delivery zones, entering new cities, and extending operating hours.

Strategic Moves and Technology Investments

CEO Jitse Groen attributed the overall improvement in GTV to increased partnerships, expanded delivery coverage, and significant technological advancements. The company remains committed to reducing costs through technology, including using AI to streamline operations at its call centers.

Just Eat Takeaway also announced a share buyback program of up to €150 million, supported by its strong liquidity position. The company has maintained its annual core profit forecast, first announced in late February.

Future Prospects and Market Outlook

The company reiterated its intention to sell all or part of its Grubhub unit in the United States, which it acquired in 2020 and has been trying to divest since 2022.

Investors are currently facing a challenging market environment, with many concerned about high valuations and finding new opportunities. ProPicks, a service offering six model portfolios powered by AI-driven stock picks, has identified several high-potential stocks, including nine that have surged over 25% this year. This could offer potential opportunities for investors seeking to navigate the current market landscape.

Is JETJ a Good Investment?

As Just Eat Takeaway continues to strengthen its position in Europe and address challenges in North America, investors may consider whether the company remains a strong investment choice amidst evolving market conditions.

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