Food delivery company Just Eat Takeaway has recently experienced a mix of results across different regions, as tough trading in the US offset growth in the UK and Europe. The UK and Ireland sector saw a positive upturn in sales, with a 6% increase in the third quarter. Meanwhile, northern Europe also showed growth, with a 4% increase in sales. However, the US market faced a significant challenge with a 12% decline in sales, impacting the overall performance of the company.
The Amsterdam-based group reported a 3% decrease in sales, measured by gross transaction value (GTV), amounting to 6.3 billion euros (£5.3 billion) in the three-month period ending in September. Despite the overall decline, the UK and Ireland segment saw promising growth, amounting to 1.8 billion euros (£1.5 billion), while northern Europe also demonstrated a positive trend. Just Eat mentioned that the group’s performance improved towards the end of the third quarter after a slower start in July.
Overall, the company handled fewer orders through its platforms in the third quarter, with a 1% decrease in the UK and Ireland, totaling 60.1 million orders. The group as a whole experienced a 6% decline in orders, amounting to 211.1 million, mainly impacted by the challenges faced in the US market.
Following a strong first half of the year, which saw Just Eat’s UK trading at its best in three years, the company experienced a 9% increase in gross transaction value, or 6% on a constant currency basis, reaching 3.4 billion euros (£2.8 billion). CEO Jitse Groen expressed satisfaction with the performance in northern Europe and the UK and Ireland, highlighting that these segments now account for approximately 60% of the group’s total orders.
Looking ahead, Just Eat remains focused on diversifying its services through new partnerships in adjacent sectors such as grocery, pharmacy, and wellness across various markets. Groen also mentioned that despite challenges, the company is on track to meet its full-year guidance. Shares in the firm were down by 2% in Wednesday morning trading.
Furthermore, Just Eat recently announced a unique partnership with Lovehoney, a sex toy maker, to deliver “sexual wellbeing products” and accessories. This collaboration joins other non-food-related partnerships Just Eat has entered into, such as deals with Lush cosmetics and Boots.
The company’s strategic approach to expanding partnerships and exploring new avenues reflects its commitment to innovation and growth amidst evolving market dynamics. Just Eat’s ability to adapt to challenges, while focusing on core markets and exploring new opportunities, positions it for continued success in the competitive food delivery industry.