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Just Eat Takeaway kept up its strong growth in the UK and Ireland but could not prevent a global slowdown led by North America.
Europe’s biggest food delivery company by revenue saw gross transaction value (GTV) in the UK and Ireland grow 6% to €1.8bn in the third quarter of 2024. The region now makes up around 60% of its total orders.
But global GTV in Q3 fell 3% on the same period the year before, caused primarily by an ongoing slowdown in North America, where GTV dropped 12% this quarter due to fewer orders and more competition.
In early trading after the results, Just Eat’s shares were down 4%.
CEO Jitse Groen said the company was making “good progress across our key strategic pillars”, and is “well on track to deliver our guidance for the full year”.
This year’s guidance includes constant currency GTV growth of 2%-6%, excluding North America, and adjusted EBITDA of approximately €450m.
In the first nine months of 2024, Just Eat’s global GTV, excluding North America, was up 4% to €12.6bn.
In the UK, Just Eat has launched several new partnerships this year as part of its strategy to diversify beyond food. This included a deal with Boots for on-demand beauty and healthcare delivery, prescription glasses provider Pop Specs, and Card Factory.
As part of three share buyback schemes launched in the past 18 months, the company has repurchased €340m worth of shares.
Morning update
Shoppers begun making more visits to supermarkets again in October although with smaller average basket sizes, according to new NIQ data this morning.
UK households were shopping for groceries almost five times a week in the four weeks to 5 October, although opting for smaller baskets that averaged just under £19 in value. That was down 4% on the same period last year due to lessening inflation, NIQ said.
More visits meant total till sales at supermarkets grew 4.7% in the period, up from 4% in the previous month. Overall, fmcg volume growth was up 1.4%.
General merchandising is also in growth as shoppers begin to buy seasonal products for Halloween and Christmas. NIQ highlighted what shoppers are looking for when choosing where to shop for their Christmas groceries with 49% saying low prices, 48% food quality and 47% good stock availability.
Confectionery led on value growth with a jump of 11%, followed by produce (8.5%), meat, fish and poultry (5.7%) and health and beauty (5.4%).
Ocado maintained its status as the UK’s fastest growing retailer over the last 12 weeks (+15.9%), with M&S in second (+12.4%). One-in-three households are now shopping at M&S for food and drink.
UK inflation fell unexpectedly to 1.7% in the year to September, the first time it’s gone below the 2% target in more than three years.
Fuel prices were one of the main drivers, dropping by 10.4% compared with the same month in 2023, according to the Office of National Statistics.
However, food inflation went from 1.3% in August to 1.8% in September, with prices rising especially on milk, cheese, eggs, soft drinks and fruit.
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