Just Eat Takeaway launches new share buyback programme of up to €150M: Key takeaways from H1 2024 results

Amsterdam-based Just Eat Takeaway.com, an online food delivery marketplace, on Wednesday, announced a new share buyback programme.

The company plans to repurchase ordinary shares amounting to up to €150M, which will not exceed 10 per cent of the issued shares authorised by the general meeting.

The repurchased shares will either be cancelled to reduce the company’s issued share capital or used to cover its obligations under share-based compensation arrangements.

The buyback programme will commence on 31 July 2024 and is expected to complete no later than 31 March 2025.

The number of shares to be repurchased will be within the authorisation granted to the Management Board by the general meeting of Just Eat Takeaway.com.

The maximum number of shares to be repurchased is approximately 6.3 per cent of the company’s issued share capital, based on the closing share price on July 30, 2024, which was €10.87.

H1, 2024 report

In other news, the Amsterdam company also announced an update for H1, 2024. 

According to the company, the Gross Transaction Value (GTV) grew by 3 per cent in constant currency for the Group, excluding North America.

Key highlights include significant investments in expanding delivery coverage, resulting in order growth in Northern Europe during Q2 2024.

Total revenue for H1 2024 reached €2,570M, slightly down from €2,588M for H1 2023, while revenue less adjusted order fulfillment costs per order improved by 7 per cent compared to the previous year.

Additionally, adjusted EBITDA substantially increased to €203M in H1 2024, up 42 per cent from H1 2023, driven by reduced order fulfillment and central costs.

Net loss for the period amounted to €301M in H1 2024 (€258M in H1 2023) and was mainly driven by non-cash impairment losses and the amortisation of intangibles acquired through business combinations, says the company.

“Driven by the growth of our partner base, expansion of our Delivery coverage, and significant technological advancements, GTV growth further improved in H1 2024. I am pleased that, at the same time, our adjusted EBITDA grew to €203 million in H1 2024, which is 42% higher than in the same period last year. We are well on track to achieve our guidance for the full year,” says Jitse Groen, CEO and founder of Just Eat Takeaway.com

Region-specific performance

Region-specific performance showed positive trends, with GTV in Northern Europe increasing by 5 per cent in constant currency, reaching €4B in H1 2024 compared with €3.8B in H1 2023. 

Adjusted EBITDA decreased slightly to €186M in H1 2024 from €191M in H1 2023.

The UK and Ireland segment also achieved GTV growth of 6 per cent at constant currency in H1 2024, accompanied by a marked improvement in adjusted EBITDA by 64 per cent to €92M.

Adjusted EBITDA losses in Southern Europe and ANZ improved to minus €49M in H1 2024 from minus €55M in H1 2023.

In North America, adjusted EBITDA significantly increased by 57 per cent to €80M in H1 2024, reflecting the company’s strong progress towards cash flow breakeven.

As of June 30, 2024, Just Eat Takeaway.com had €1,347 million in cash and cash equivalents, down from €1,724M on December 31, 2023.

This decrease reflects the repayment of €250M in cash for convertible bonds that matured on January 25, 2024, as well as cash outflows of €108M for the share buyback program.