Takeaway ordering firm delivers a leap in profits

Just Eat has repoted a leap in profits. Picture: Contributed
Just Eat has repoted a leap in profits. Picture: Contributed
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JUST EAT reported a sharp jump in half-year profits yesterday 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 in the six months to 30 June, up from £2.3m a year before.

The FTSE 250 company, which was part of a wave of flotations to hit the stock market earlier this year, made big gains in its home market, which accounts for almost three quarters of revenues.

In the UK, Just Eat boosted its takings by 69 per cent to £51.9m while across the group, sales lifted 58 per cent to £69.8m compared with a year ago, as it sent £460m-worth of business to its takeaway clients.

It said more than half its orders were processed through apps or a mobile device.

The company was founded in Denmark in 2001, but relocated to London five years later. It also operates in Canada, France, Ireland and Spain.

It 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.”

Just Eat increased its UK marketing spend by 28 per cent to £9.6m as a result of sponsorship of ITV’s Take Me Out and Derby County FC.

British sales grew ahead of orders due to underlying food price inflation and an increase in restaurant commissions of 1 per cent introduced 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. Plain old Margarita was the most popular.