Just Eat Takeaway raises 2023 guidance, launches buyback

Just Eat Takeaway raises 2023 guidance, launches buyback

By Tristan Veyet and Laura Lenkiewicz

(Reuters) -Just Eat Takeaway.com NV raised its 2023 adjusted core profit outlook on Wednesday, saying it continues to make good progress on delivery-led operational improvements and is now ahead of plan.

Europe’s biggest meal delivery company expects adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of 275 million euros ($301.6 million) in 2023. It had in January forecast adjusted EBITDA of 225 million euros.

Furthermore, the company said it expected its gross transaction value (GTV) growth to be in a range of -4% to +2% year-on-year in 2023.

The Dutch-listed online delivery group expects free cash flow to turn positive in mid-2024.

The food delivery sector was one of the big beneficiaries of the COVID-19 pandemic, but that effect has waned as consumers, faced with surging prices, have started to cut back spending.

The firm reported total orders of 227.8 million in a first-quarter trading update, 14% below last year’s level, and a GTV of 6.67 billion euros, down 8% year-on-year.

Just Eat Takeaway also said it launched a share buyback programme of up to 150 million euros to be completed by the end of the year, citing an improvement of future earnings per share and covering the company’s obligations.

Since its IPO in 2016, Just Eat Takeaway’s share price lost close to 30% of its original value.

($1 = 0.9117 euros)

(Reporting by Tristan Veyet and Laura Lenkiewicz in Gdansk; Editing by Kim Coghill, Subhranshu Sahu and Varun H K)