Just Eat Takeaway.com Q1 2023 Trading Update Just Eat Takeaway.com N.V. (LSE: JET, AMS: TKWY), hereinafter the “Company”, or together with its group companies “Just Eat Takeaway.com”, one of the world’s largest online food delivery marketplaces, hereby issues a trading update for the first quarter of 2023. Jitse Groen, CEO of Just Eat Takeaway.com said: “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. 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. Our efforts to improve profitability are running ahead of plan, allowing us to upgrade the 2023 Adjusted EBITDA target to approximately €275 million. We now also expect to turn free cash flow positive by mid-2024.”
- The delta to the prior year GTV narrowed throughout Q1 2023, with March declining -5% year-on-year, ahead of the Q1 2023 year-on-year decline of -8%. The Northern Europe and UK and Ireland segments are leading the GTV recovery. However, Q1 2023 continued to be affected by a difficult pandemic comparison.
- The Company continues to make good progress on Delivery-led operational improvements and is now ahead of plan.
- GTV growth to be in a range of -4% to +2% year-on-year in 20231 , with a return to growth skewed towards the end of the year, given the lower absolute Order level of H2 2022 versus H1 2022.
- Management expects to deliver a positive Adjusted EBITDA of approximately €275 million in 2023 (previously approximately €225 million in 2023). This guidance includes additional investments in food and non-food adjacencies, wage costs inflation and reflects an uncertain macro-economic environment.
- Management expects free cash flow (before changes in working capital) to turn positive in mid-2024.
- As a result of the strong balance sheet and the increased visibility on free cash flow generation, the Company initiates a share buyback programme of up to €150 million to improve future earnings per share. The repurchased shares will be used to cover the Company’s obligations under share-based compensation arrangements or will be cancelled to reduce issued share capital. The programme will commence on 19 April 2023 and is expected to complete no later than December 2023.
- The long-term objectives for Just Eat Takeaway.com remain unchanged.
- Management, together with its advisers, continues to actively explore the partial or full sale of Grubhub. There can be no certainty that any such strategic actions will be agreed or what the timing of such agreements will be. Further announcements will be made as and when appropriate.