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Just Eat raises earnings forecast, announces £132m share buyback

Just Eat buyback
Image credit: EternalMoments via Shutterstock

Just Eat Takeaway has raised its profit outlook for the year and announced a €150m (£132m) share buyback programme, despite a drop in orders.

The London-listed food delivery company said operational improvements meant it was expecting greater adjusted earnings this year, with the current forecast at €275m (£242m), an increase from the previously predicted €225m.

This is despite a reported 14% drop in total orders in its first quarter trading update.

The firm predicted its gross transaction value growth to be in the range -4% to 2% in 2023.

Just Eat Takeaway announced the share buyback scheme alongside its profit outlook. The company said the acquisition of its stock would improve earnings per share.

The Netherlands-headquartered firm has been on a cost-cutting mission as it seeks profitability. It has yet to turn a profit since its IPO back in September 2016.

One recent measure saw the company cut almost 2,000 jobs from both head office and its fleet of couriers.

Just Eat Takeaway had previously attempted to shift to an employee model for its delivery drivers. However, the cuts represented a return to the gig economy for the company.

Last year it sold a £1.5bn stake in a South American-based food delivery company to extend its cash flow.