31st Jul 2024 10:36
(Alliance News) - Just Eat Takeaway.com NV produced a "solid" set of first-half numbers, Deutsche Bank analysts said, though Liberum took a pessimistic view, believing there was little to "get excited" about at first glance.
Nonetheless, shares in the food delivery firm surged 8.8% to 994.39 pence each in London on Wednesday, helped by a buyback announcement. It unveiled a EUR150 million share buyback which it expects to conclude at the end of March.
The Amsterdam-based food delivery firm said revenue in the six moths that ended June 30 slipped 0.7% to EUR2.57 billion from EUR2.59 billion a year earlier. Its pretax loss stretched to EUR363 million from EUR317 million.
However, adjusted earnings before interest, tax, depreciation and amortisation surged 42% to EUR203 million from EUR143 million a year prior. This was assisted by reduced order fulfilment and central costs.
Orders declined 4.9% to 446 million from 469 million and gross transaction value decreased 1.5% to EUR13.2 million from EUR13.4 million.
Just Eat reiterated guidance for 2024. It expects constant currency GTV growth excluding North America in the range of 2% to 6% year-on-year. Adjusted Ebitda of around EUR450 million is predicted, with free cash flow to continue to be positive in 2024 and thereafter.
German bank Deutsche Bank said it was a "solid set of first-half results". It noted orders and GTV were largely in line with consensus, but added Just Eat reported a revenue and adjusted Ebitda beat.
"Within the mix, UK and Ireland were below expectations but Northern Europe ahead, thanks to reinvestments into the segment," Deutsche added.
Liberum said the headline figures from JET "look good", but looking into the reporting segments offers a "different story".
"Southern Europe & Australia is a car crash, with order numbers, revenues, and Ebitda missing by progressively greater amounts due to operating leverage," the broker said.
North America saw an Ebitda beat, but Liberum believes this was only due to "deeper than expected cost-cutting". Should the cost cuts continue, this could "cripple the top-line", Liberum warned.
"Overall, a mixed bag and hard to see any reason to get excited at first glance," Liberum added.
By Eric Cunha, Alliance News news editor
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