# Just Eat delivers Q3 profit as cost cuts outweigh lower order volumes Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-10-19 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Just Eat Takeaway.com reports positive earnings for Q3 Meta Description: Europe's largest meal delivery company, Just Eat Takeaway.com, exceeded expectations with positive adjusted EBITDA in the third quarter despite falling URL: https://financedigest.com/just-eat-delivers-q3-profit-as-cost-cuts-outweigh-lower-order-volumeshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-10-19t053517z2lynxmpei9i04xrtroptp4just-eat-takeaway-results-1736814999907-compressed.jpg) By Diana Mandia and Dagmarah Mackos (Reuters) -Just Eat Takeaway.com, Europe’s largest meal delivery company, said on Wednesday it made an underlying quarterly profit earlier than expected as efforts to cut delivery and operating expenses offset falling orders. The total value of orders, known as gross transaction value (GTV), a common measure for e-commerce companies, rose 2% in the quarter, reflecting higher prices on menus, but the number of orders weakened, in line with analysts’ expectations. The company said adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) were positive in the [third quarter](https://www.financedigest.com/greek-residential-property-price-recovery-picks-up-in-third-quarter.html "Greek residential property price recovery picks up in third quarter"), ahead of guidance issued at the start of the year. That comes after the group said in September it expected to have positive adjusted EBITDA in the [second half of the year](https://www.financedigest.com/ericssons-board-rebuked-by-shareholders-at-agm-for-second-year-in-a-row.html "Ericsson’s board rebuked by shareholders at AGM for second year in a row"). The food delivery sector was one of the big beneficiaries of the pandemic, but that effect has waned as consumers, [faced with surging prices](https://www.financedigest.com/bristol-myers-pfizer-abbvie-drugs-likely-to-face-u-s-price-negotiation.html "Bristol Myers, Pfizer, AbbVie drugs likely to face U.S. price negotiation"), have started to cut back. But Chief Executive Officer Jitse Groen said in a media call the company did not [see much impact from the cost-of-living crunch in the quarter](https://www.financedigest.com/italys-mps-sees-safe-habour-ahead-after-strong-quarter.html "Italy’s MPS sees ‘safe habour’ ahead after strong quarter") as markets continued to stabilise after COVID-19 lockdowns. In terms of order behaviour of our existing customers, we don’t really [see an impact yet from inflation](https://www.financedigest.com/britains-next-sees-lower-clothing-inflation-shares-dip-on-cautious-outlook.html "Britain’s Next sees lower clothing inflation, shares dip on cautious outlook") or a more difficult environment for consumers,” he said. Groen said he expected [food delivery](https://www.financedigest.com/european-food-delivery-shapes-up-with-getirs-gorillas-buy.html "European food delivery shapes up with Getir’s Gorillas buy") to remain popular in northern Europe because of the number of more affordable restaurants on offer on Just Eat. Analysts said the results were broadly in line with [expectations as basket size continued to increase](https://www.financedigest.com/russias-gazprom-expects-increase-in-2022-revenue.html "Russia’s Gazprom expects increase in 2022 revenue") due to food inflation, while orders remain under pressure as consumers cut spending and the company reduced promotions. The group last [posted an underlying profit](https://www.financedigest.com/ford-posts-lower-profit-issues-downbeat-outlook-shares-drop.html "Ford posts lower profit, issues downbeat outlook; shares drop") in the second half of 2020, said Clement Genelot, analyst at Bryan Garnier. “EBITDA breakeven as soon as in Q3 is good news, but it remains to be seen what levers are still at (Just Eat’s) disposal to try to offset the likely upcoming new headwinds in 2023,” Genelot said, referring to weaker trading in Europe. Shares in the company see-sawed in [early trade as investors weighed the return to profitability](https://www.financedigest.com/early-detection-of-mismatched-trades-is-key-to-managing-risk-and-maximizing-profits-on-the-pl-desk.html "EARLY DETECTION OF MISMATCHED TRADES IS KEY TO MANAGING RISK AND MAXIMIZING PROFITS ON THE P&L DESK") against concerns about falling orders. At 0816 GMT, the shares were down 0.5%. TUMULTUOUS YEAR The results come after a tumultuous year for the company, which has been under pressure from [investors to boost](https://www.financedigest.com/aviva-boosts-investor-payouts-after-profit-beat.html "Aviva boosts investor payouts after profit beat") its shares amid stiff competition and a fading pandemic boost. Its [stock has lost almost 70% of its value this year](https://www.financedigest.com/global-stocks-to-grind-higher-lacklustre-year-ahead-reuters-poll.html "Global stocks to grind higher, lacklustre year ahead: Reuters poll"). Although the consumer backdrop will likely be challenging due to the economic environment, Takeaway.com is well-capitalised through the planned [sale of its stake](https://www.financedigest.com/sap-to-cut-3000-jobs-explore-qualtrics-stake-sale.html "SAP to cut 3,000 jobs, explore Qualtrics stake sale") in Brazil’s iFood, Groen said in a statement. The company will hold an extraordinary [shareholders meeting](https://www.financedigest.com/climate-activists-take-aim-at-barclays-stanchart-shareholder-meetings.html "Climate activists take aim at Barclays, StanChart shareholder meetings") on Nov. 18 to vote on the deal [worth $1.8 billion](https://www.financedigest.com/why-a-quiet-revolution-in-the-cloud-is-worth-billions.html "Why A Quiet Revolution In The Cloud Is Worth Billions"), it said. It [continues to explore “the partial or full sale”](https://www.financedigest.com/swedish-match-continues-to-see-strong-smoke-free-sales-growth.html "Swedish Match continues to see strong smoke-free sales growth") of its troubled U.S. business, Grubhub. As part of the [cost cutting](https://www.financedigest.com/cutting-business-costs-pros-of-using-commercial-heat-pumps-in-2016.html "Cutting business costs: Pros of using commercial heat pumps in 2016") measures, Groen said the company has introduced a hiring freeze. Just Eat is looking to expand its networks to include [deliveries of other products and is currently exploring a number of pilot](https://www.financedigest.com/sas-cancels-1700-flights-due-to-pilot-strike-late-aircraft-deliveries.html "SAS cancels 1,700 flights due to pilot strike, late aircraft deliveries") schemes, Groen said. (Reporting by Diana Mandiá and Dagmarah Mackos; Editing by Josephine Mason, Kim Coghill, Kenneth Maxwell and Emelia Sithole-Matarise) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---