Just Eat Takeaway posts strong profitability, shares rise
Investing.com – Just Eat Takeaway (AS:TKWY) shares jumped on Wednesday after the company reported its half-year 2024 results. While overall Gross Transaction Value (GTV) grew 3% year-over-year, excluding North America, adjusted EBITDA slightly exceeded expectations.
The company’s adjusted EBITDA surged 42% year-on-year to €203 million, exceeding analyst expectations. This improvement stemmed from reduced order fulfillment costs and central expenses.
“We remain cautious around its mid-term growth, in light of its reduced investments and an ongoing challenging consumer backdrop,” said analysts at RBC Capital Markets in a note.
The UK and Ireland segment reported strong growth, with GTV increasing 6% and adjusted EBITDA margin to 2.7%. The online food delivery platform reported a significant turnaround in free cash flow, generating €38 million in H1 2024 compared to a negative €78 million in the same period last year.
The company announced a fresh €150 million share buyback program, signaling confidence in its future prospects and rewarding shareholders. Management reaffirmed its full-year guidance, including adjusted EBITDA of approximately €450 million and continued positive free cash flow.
The company is also actively exploring a partial or full sale of Grubhub, its North American arm. This potential strategic move could further unlock value for shareholders.
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