Amsterdam’s Just Eat Takeaway issues Q1 2023 trading update; initiates Share buy-back programme

Amsterdam-based Just Eat Takeaway.com, an online food delivery marketplace, announced on Wednesday a trading update for Q1 2023.

According to the update, the delta to the prior year’s GTV (Gross Transaction Volume) narrowed throughout Q1 2023, with March declining -5 per cent year-on-year ahead of the Q1 2023 year-on-year decline of -8 per cent. 

The Northern Europe and UK & Ireland segments are leading the GTV recovery, although the first quarter of 2023 continued to be impacted by the difficult pandemic comparison.

Just Eat Takeaway says it has made good progress on Delivery-led operational improvements and is now ahead of plan. 

GTV growth is expected to be in the range of -4 per cent to +2 per cent year-on-year in 2023, with a return to growth skewed towards the end of the year due to the lower absolute Order level in H2 2022 versus H1 2022.

Just Eat Takeaway’s management expects to deliver a positive Adjusted EBITDA of approximately €275M, which is an increase from the previous estimate of approximately €225M.

Just Eat Takeaway also expects free cash flow (before changes in working capital) to turn positive in mid-2024. 

As a result of a strong balance sheet and increased visibility on free cash flow generation, the company is also initiating a share buyback programme.

Just Eat Takeaway’s share buyback programme

The company plans to repurchase ordinary shares in the amount of up to €150M, subject to a number of shares not exceeding the authority granted by the general meeting, which is 10 per cent of the issued shares, the company mentions in a  press release. 

The programme is set to commence on April 19, 2023, and is expected to complete no later than December 2023. 

As of April 18, 2023, the maximum number of shares being repurchased is approximately 4.2 per cent, based on the closing share price of €16.26.

The repurchased shares will be used to cover Just Eat Takeaway’s obligations under share-based compensation arrangements or will be cancelled to reduce issued share capital.

“The current authorisation of the general meeting has been obtained on 4 May 2022 and is valid for 18 months, ending on 4 November 2023. Should the general meeting approve a new authorisation of the Management Board to repurchase shares in its meeting to be held on 17 May 2023, the authorisation set out in agenda item 10 in the Agenda and Explanatory Notes to the 2023 Annual General Meeting will replace the authorisation dated on 4 May 2022,” says the company.