Just Eat Takeaway (JET) Shares Plunge 7.5% on FY 2023 Results

The Just Eat Takeaway.com NV (LON: JET) share price plunged 7.51% after its full-year 2023 earnings results were released. In 2023, the Group, excluding its North American operations, witnessed a resurgence in Gross Transaction Value (GTV) growth, showcasing an upward trajectory throughout the year.

The Dutch multinational online food ordering and delivery company reported that the overall GTV for the Group, including North American figures, reached €26.4 billion, marking a slight decrease of 4% in constant currency terms compared to the previous year.

Significant improvements were made in revenue-less adjusted order fulfilment costs per order, which saw a 12% rise from the previous year. This was primarily attributed to enhanced processes and automation integration, which reduced the cost per order and elevated the experience for customers and restaurant partners.

The Group's adjusted EBITDA substantially increased to €324 million in 2023, up from €19 million in 2022, with all segments contributing significantly to this uplift. This surge in adjusted EBITDA enabled the Group to achieve the pivotal milestone of generating positive free cash flow in the second half of 2023.

As of 31 December 2023, with cash and cash equivalents totalling €1,724 million and achieving positive free cash flow in the latter half of the year, the Group's financial position is robust. This strong liquidity position enabled the Group to initiate share buybacks. By 23 February 2024, 7.3% of the issued shares had been repurchased under the share buyback programs announced in April and October 2023.

Northern Europe, the UK, and Ireland segments closed the year with record quarterly GTV levels. In Northern Europe, GTV saw a steady increase throughout the year, culminating in a 3% growth to €7.7 billion. This segment also reported strong profitability, with adjusted EBITDA reaching €366 million in 2023, improving the adjusted EBITDA margin to 4.8% from 4.2% in 2022.

The UK and Ireland segment experienced a significant improvement in GTV, reaching €6.6 billion in 2023. Adjusted EBITDA in this segment rose dramatically to €135 million from €23 million in 2022, driven by delivery operation efficiencies. The adjusted EBITDA margin increased to 2.0% from 0.4% in 2022, nearing the margin levels seen in Northern Europe.

Just Eat Takeaway.com (JET) share price. 

The Just Eat Takeaway.com (JET) share price plunged 7.51% to trade at 1188.0p from Tuesday’s closing price of 1284.5p.