Amsterdam’s Just Eat Takeaway.com launches new share buyback programme of up to €150M

Amsterdam-based Just Eat Takeaway.com, an online food delivery marketplace, announced on Wednesday that it has started a new share buyback programme to improve future earnings per share. 

Under the programme, Just Eat Takeaway.com plans to repurchase ordinary shares worth up to €150M, within the limit set by the general meeting (10 per cent of the issued shares).

The company plans to repurchase shares worth approximately 5.7 per cent of the current issued share capital. The closing share price on October 17, 2023, was €11.92.

The Dutch company says it will utilise the repurchased shares to cover its obligations under share-based compensation arrangements or will be cancelled to reduce the issued share capital.

The buyback programme will start on October 18, 2023, and is expected to finish by September 30, 2024.

“The execution of the share buyback programme will be done under the terms of an engagement letter with a third party, performed in compliance with the safe harbour provisions for repurchasing shares under the European Market Abuse Regulation. Shares are bought in the market and accumulated on the treasury share account until settlement under the employee incentive plans or cancellation. As the programme will be lead-managed by the third party within pre-defined execution parameters, transactions may be carried out during closed periods,” says the company. 

Just Eat Takeaway.com Q3 2023 trading update

In other news, the Amsterdam company  also announced an update for Q3, 2023. 

In the third quarter of 2023, the company witnessed a resurgence in its Global Transaction Value (GTV) growth outside North America.

Notably, GTV growth in Northern Europe and the UK and Ireland regions increased +6 per cent and +4 per cent, respectively. 

Reflecting on this momentum, the company has decided to raise its 2023 Adjusted EBITDA guidance to an estimated €310M (previously approximately €275M in 2023). 

However, in light of changing market dynamics, the company has also adjusted its GTV guidance for 2023, anticipating a constant currency growth rate of approximately -4 per cent. 

The company has also updated its free cash flow guidance, aiming for approximately break-even in the second half of 2023, followed by a positive trajectory. 

“The majority of our business has returned to GTV growth in the third quarter with particular strong momentum in Northern Europe and the UK and Ireland segments. Within the UK and Ireland we continue to invest significantly whilst at the same time increasing profitability. Although the recovery of North America is on a slower trajectory, we are satisfied that this segment too is rapidly becoming cash flow neutral,” says Jitse Groen, CEO of Just Eat Takeaway.com. 

“As a result, we are in a position to upgrade both our Adjusted EBITDA and cash flow guidance and now expect to be approximately cash flow break-even in the second half of 2023 and positive thereafter,” he adds.