3rd May 2016 06:48
LONDON (Alliance News) - Just Eat PLC on Tuesday raised its guidance for full-year revenue and earnings following a successful first quarter.
The online takeaway delivery company said it achieved 57% growth in orders in the first quarter of 2016 year-on-year to 31.5 million, up 41% on a like-for-like basis. It said each of its segments delivered strong growth, particularly in the UK which saw a 40% increase in orders.
In addition, a one percentage point increase in the commission rate for existing UK restaurants which came into effect in early April, alongside a change from twice monthly to weekly payments, will "significantly improve" its partners' cash flows, Just Eat said.
As a result of this, Just Eat said it has increased its full-year revenue guidance to GBP358 million from GBP350 million, while raising its underlying earnings before interest, tax, depreciation and amortisation target to between GBP102 million and GBP104 million from between GBP98 million and GBP100 million.
Just Eat added that the integration of the businesses acquired in Italy, Brazil and Mexico in February is going well with strong order growth in each of those markets.
"We have had an excellent start to 2016 and I am delighted with the company's performance and the momentum in the business," Chief Executive David Buttress said in a statement.
"Our focused strategy and improvements to both our consumer offering and restaurant support are working and we are well positioned to continue benefiting from channel shift in the category," he added.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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