Just Eat reports 50% jump in orders
Online takeaway service grew its profits sharply in H1 as wet weather boosted sales
Online food service Just Eat said it received orders for 5.7 million pizzas in the first six months of the year, enough to cover 64 football pitches. The most popular topping was Margarita, followed by the Meat Feast. Photograph: Simon Dawson/Bloomberg
Just Eat reported a sharp jump in half-year profits today after the online food service added 2,500 UK takeaway outlets to its network. The firm, which connects 6.9 million users to 40,000 takeaways in 13 countries, saw underlying earnings jump to £15.9 million from £2.3 million in the six months to June 30th as it expanded in its home market.
Just Eat was founded in Denmark in 2001, but relocated to London five years later. The firm operates in 13 countries including Ireland, which is the third largest market for the company in terms of number of orders (though not necessarily revenue) and is growing rapidly. In Ireland revenue generated by Just Eat for takeaway market is €20million. The number of takeaway restaurants on JUST EAT is over 1455 and in 2013 the company received over 1.5 Million orders in Ireland.
In the UK, Just Eat boosted sales by 69 per cent to £51.9 million while orders across the group lifted 50 per cent to 27.5 million compared with a year ago, amounting to £460 million worth of business for its takeaway clients. It said more than half its orders were processed through apps or a mobile device.
Just Eat’s shares jumped by 10 per cent following the results, which were the first since the company listed on the London stock market in April. However, the FTSE 250 stock remains below its launch price of 260p, when it was valued at £1.5 billion in the largest technology flotation for eight years.
In the UK, which accounts for almost three quarters of group revenues, Just Eat grew sales ahead of orders due to underlying food price inflation and an increase in restaurant commissions of 1 per cent in January. It added that wet winter weather in the first two months of the year also boosted sales as consumers chose to stay indoors.
During the period Just Eat said it received orders for 5.7 million pizzas, enough to cover 64 football pitches. The most popular topping was Margarita, followed by the Meat Feast.
Just Eat increased its UK marketing spend by 28 per cento £9.6 million as a result of sponsorship of ITV’s Take Me Out and Derby County FC. The business said: “Our belief in the scale of the opportunity in the UK means that we will continue to invest heavily in sales, marketing, technology and product to drive long-term growth.”