The appetite for takeaway meals in Ireland, a key market for Just Eat Takeaway.com, faced headwinds in 2022 as the cost of living pressures impacted consumer behavior. The annual turnover at Just-Eat Ireland Ltd saw a modest improvement of 3.9%, reaching €67.5 million in 2022. This marked a significant deceleration compared to the remarkable 50% turnover increase recorded in the previous year.
Despite the challenges, the operating profit for the Irish operation stood at €14.5 million, translating to a tasty profit margin of 21.5%. Just Eat Takeaway.com reported that the order volume in Ireland and the UK declined from 132 million to 121 million in the first half of 2023, with revenue from these orders amounting to €629 million, down from €658 million in the same period the previous year.
The Irish operation paid dividends of €15 million to its UK parent, a notable increase from €10 million in the previous year. The company also experienced an increase in the number of employees, reaching 159 from 102, while the outlay on pay and bonuses declined to €5.6 million from €6.4 million in 2021.
Jitse Groen, CEO of Just Eat Takeaway.com, addressed the challenges and opportunities in a recent trading update. He stated, “Within the UK and Ireland, we continue to invest significantly whilst at the same time increasing profitability.” Groen highlighted the positive momentum in Northern Europe and the UK and Ireland segments, emphasizing the commitment to investment amid the recovery process.
He further shared, “Although the recovery of North America is on a slower trajectory, we are satisfied that this segment too is rapidly becoming cashflow neutral. As a result, we are in a position to upgrade both our Adjusted EBITDA and cash flow guidance and now expect to be approximately cash flow break-even in the second half of 2023 and positive thereafter.”
Just Eat Takeaway.com’s strategic approach involves navigating challenges, investing in growth, and prioritizing profitability. As the food technology landscape evolves, the company remains focused on delivering value to customers and stakeholders while adapting to the dynamic market conditions.