On Wednesday, Just Eat Takeaway.com NV announced an increase in its adjusted core profit forecast for the year. This was due to the company’s successful implementation of delivery-focused operational enhancements, despite a decline in food orders.
In addition, the company revealed its plan to initiate a share buyback program worth up to 150 million euros ($164.34 million) by the end of the year. Just Eat Takeaway.com NV anticipates that this program will enhance its earnings per share.
The Covid-19 pandemic provided a boost to the food delivery industry, but as consumers faced with rising prices, discretionary spending has decreased, and the sector has seen a decline in the effects of the pandemic.
The largest meal delivery company in Europe has raised its projected adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for 2023. The company now expects to reach 275 million euros ($301.6 million), up from its previous forecast of 225 million euros in January.
Meanwhile, the company’s trading update for the first quarter disclosed a decrease in total orders to 227.8 million, which is 14% lower than the figure recorded in the same period last year.
The company listed in the Netherlands has predicted that its gross transaction value (GTV) growth for 2023 will be between -4% to +2% year-on-year. This is after recording a GTV of 6.67 billion euros, which is an 8% decrease compared to the same period in the previous year.
The company declared its anticipation of achieving a positive free cash flow by mid-2024.
Just Eat has not achieved a positive cash flow as of yet, and since its initial public offering (IPO) in 2016, the company’s share price has declined by almost 30% from its original value.
On Wednesday, the company’s share price initially increased, but then declined by 4% at 0737 GMT.