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Just Eat Takeaway Predicts Core Profit Will Turn Positive in Second Half

Investing.com 9/27/2022 Investing.com
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By Scott Kanowsky 

Investing.com -- Just Eat Takeaway (AS:TKWY) has predicted that it will swing to a profit in the second half of 2022, sending shares in the Amsterdam-listed food delivery service higher on Tuesday.

In a statement, the group said it now expects to generate positive adjusted earnings before interest, taxes, depreciation and amortization in the final six months of the year, recovering from a first half loss of €134M.

"[T]he Company is working on improvements to Revenue per Order, Delivery costs per Order and Overheads&Opex. As a result of the significant progress Just Eat Takeaway.com has already made, management now expects Just Eat Takeaway.com to turn profitable earlier than initially anticipated," the company said.

It also backed its full-year expectations to deliver positive core income.

However, uncertainty still surrounds the potential impact macroeconomic conditions and foreign exchange volatility will have on the business. As a result, Just Eat slashed the outlook for gross transaction value - a measurement of the total dollar value of deals processed - to low-single digit annual growth, down from the prior guidance of a mid-single digit increase.

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