Half Year 2024 Results

• Constant currency GTV growth excluding North America of 3% in H1 2024
• Half year adjusted EBITDA[1] of €203 million; an increase of over 40% year-on-year
• Free cash flow before changes in working capital[2] of €38 million in H1 2024
  
• New share buyback programme of up to €150 million
  
• Guidance for 2024 reiterated

Group highlights

• Gross Transaction Value ('GTV') grew 3% in constant currency for the Group excluding North America, in-line with the 2024 guided range.
• Order growth in Q2 2024 in Northern Europe, reflecting significant investments in expanding delivery coverage.
  
• Total revenue was €2,570 million in H1 2024 compared with €2,588 million for H1 2023. Revenue less adjusted order fulfilment costs[3] per order improved by 7% in H1 2024 compared with the same period prior year.
• Adjusted EBITDA reached €203 million in H1 2024, up 42% compared with H1 2023, assisted by reduced order fulfilment and central costs.
• Free cash flow before changes in working capital improved to €38 million in H1 2024 from minus €78 million in H1 2023.
• Net loss for the period amounted to €301 million in H1 2024 (€258 million in H1 2023) and was mainly driven by non-cash impairment losses and the amortisation of intangibles acquired through business combinations.

Segment highlights

• In Northern Europe, GTV increased by 5% in constant currency to €4.0 billion in H1 2024 compared with €3.8 billion H1 2023. Adjusted EBITDA decreased slightly to €186 million in H1 2024 from €191 million in H1 2023 reflecting significant investments in expanding delivery coverage by entering new cities, expanding existing delivery zones, and widening opening hours. On the back of these investments, Northern Europe saw order growth in Q2 2024.

• In UK and Ireland, GTV increased by 6% at constant currency in H1 2024 compared with H1 2023. Lower delivery cost per order following the delivery model simplification in the UK saw adjusted EBITDA improve by 64% to €92 million in H1 2024 from €56 million in H1 2023, while we continued to scale our grocery business. Consequently, the margin in the UK and Ireland segment continued to improve to 2.7% in H1 2024 compared with 1.8% in H1 2023, proving the ability to grow both top and bottom lines simultaneously.

• Adjusted EBITDA losses in Southern Europe and ANZ improved to minus €49 million in H1 2024 from minus €55 million in H1 2023. The decision to discontinue operations in New Zealand and France reflects the business’ commitment to drive efficiencies and focus on building strong and sustainably profitable positions.
• In North America, adjusted EBITDA increased significantly by 57% to €80 million in H1 2024, from €51 million in H1 2023, despite the ongoing headwind to segment profitability from fee caps in New York City. Grubhub continues to make strong progress towards cash flow breakeven, with a free cash flow before changes in working capital of minus €4 million in H1 2024.
  

Other Financials

• Just Eat Takeaway.com’s cash and cash equivalents amounted to €1,347 million at 30 June 2024 in comparison to €1,724 million at 31 December 2023, reflecting the repayment of convertible bonds of €250 million in cash upon maturity on 25 January 2024 and cash outflows in relation to the share buyback programme of €108 million.

• We were able to use part of our strong liquidity position to complete two share buyback programmes of €150 million each, repurchasing a total of 9.9% of issued shares. The Company decided to cancel 5% of its total issued shares, representing approximately 11 million ordinary shares currently held in treasury, to reduce the number of issued shares. On 30 July 2024, Just Eat Takeaway.com N.V. held a total of 15,001,596 shares in treasury, from a total of 219,966,059 issued shares.

• Positive free cash flow (before changes in working capital), combined with the strong balance sheet (taking into account future debt and bond maturities) allows us to launch a new share buyback programme of up to €150 million. The programme will commence on 31 July 2024 and is expected to complete no later than 31 March 2025.

Outlook

• The Management Board reiterates the following guidance for 2024:

o    Constant currency GTV growth excluding North America in the range of 2% to 6% year-on-year

o    Adjusted EBITDA of approximately €450 million

o    Free cash flow (before changes in working capital) to continue to be positive in 2024 and thereafter

• Long-term target of group adjusted EBITDA margin in excess of 5% of GTV.

• Management, together with its advisers, continue to actively explore the partial or full sale of Grubhub. There can be no certainty that any such strategic actions will be agreed or what the timing of such agreements will be. Further announcements will be made as and when appropriate.

Please download the full press release here:

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Analyst and investor conference call and audio webcast

Jitse Groen, Mayte Oosterveld, Jörg Gerbig and Andrew Kenny will host an analyst and investor conference call to discuss the results of the first six months of 2024 at 10:30 am CET on Wednesday 31 July 2024. Members of the investor community can follow the audio webcast on: https://www.justeattakeaway.com/investors/results-and-reports/

Media and wires call

Jitse Groen will host a media and wires call to discuss the half year 2024 results at 8:30 am CET on Wednesday 31 July 2024. Members of the press can join the conference call at +31 20 708 5073 or +44 (0)33 0551 0200.

Financial calendar

For more information, please visit https://www.justeattakeaway.com/investors/financial-calendar/

Additional information on https://www.justeattakeaway.com/

·       Just Eat Takeaway.com Analyst Presentation H1 2024

·       Our media kit including photos of the Management Board and industry-related photos for download

Market Abuse Regulation

This press release contains inside information (i) as meant in clause 7(1) of the Market Abuse Regulation and (ii) in terms of Article 7(1) of the Market Abuse Regulation as it forms part of UK law pursuant to the European Union (Withdrawal) Act 2018.

Auditor's involvement

The content of this document has not been audited or reviewed.

Accounting Principles

Just Eat Takeaway.com’s half year 2024 results have been prepared in accordance with IAS 34 Interim Financial Reporting and should be read in conjunction with the Company’s last annual consolidated financial statements as at and for the year ended 31 December 2023 and any public announcements made by the Company during the interim reporting period. The accounting policies applied in these condensed consolidated interim financial statements are the same as those applied in the Company’s consolidated financial statements as at and for the year ended 31 December 2023, except for the estimation of the income tax expense which is recognised based on management’s estimate of the weighted average effective annual income tax rate expected for the full year.

Disclaimer

Statements included in this press release that are not historical facts (including any statements concerning investment objectives, other plans and objectives of management for future operations or economic performance, or assumptions or forecasts related thereto) are, or may be deemed to be, forward-looking statements, including "forward-looking statements". These forward-looking statements may be identified by the use of forward-looking terminology, including the terms "anticipates", "expects", "intends", "may", or "will" or, in each case, their negative or other variations or comparable terminology, or, by discussions of strategy, plans, objectives, goals, future events or intentions. Forward-looking statements may and often do differ materially from actual results. Any forward-looking statements reflect the Company's current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Company’s business, results of operations, financial position, liquidity, prospects, growth or strategies. Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser. Forward-looking statements reflect knowledge and information available at, and speak only as of, the date they are made, and the Company expressly disclaims any obligation or undertaking to update, review or revise any forward-looking statement contained in this press release. Readers are cautioned not to place undue reliance on such forward-looking statements.

No Offer or Solicitation

This document shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

Alternative Performance Measures

This document includes certain alternative performance measures. Just Eat Takeaway.com uses these measures as key performance measures because it believes they facilitate operating performance comparisons from period to period by excluding potential differences primarily caused by variations in capital structures, tax positions, the impact of acquisitions and restructuring, the impact of depreciation and amortisation expense on its fixed assets and the impact of share-based payment expenses. These alternative performance measures are not measurements of Just Eat Takeaway's financial performance under IFRS and should not be considered as an alternative to performance measures derived in accordance with IFRS. These should be read in conjunction with Just Eat Takeaway.com's financial statements prepared in accordance with IFRS.

Footnotes

[1] Adjusted EBITDA is defined as operating income / loss for the period adjusted for depreciation, amortisation, impairments, share-based payments, acquisition and integration related costs and other items not directly related to underlying operating performance (‘Other items’). Other items include, amongst others, restructuring costs, certain legal, tax, and regulatory matters, and certain insurance income and costs

[2] Free cash flow is defined as net cash generated by / (used in) operating activities less capital expenditure, lease payments and taxes paid on net settlement of share-based payment awards. Free cash flow before changes in working capital excludes other changes in working capital, other non-current assets and provisions

[3] Revenue less order fulfilment costs, adjusted for other items as shown in Appendix 2