Just Eat plc, a leading global marketplace for online food delivery, has reported its results for the year ended 31 December 2016, with revenues up 52% to £375.7m and Underlying EBITDA up 93% to £115.3m.
Financial Highlights
· Orders up 42% to 136.4 million (2015: 96.2 million), up 36% on a like-for-like basis
· Revenues up 52% to £375.7 million (2015: £247.6m), up 46% on a LFL basis
· Underlying EBITDA up 93% to £115.3 million (2015: £59.7m)
· Underlying EBITDA margin up 700 basis points to 31% (2015: 24%)
· Profit before tax up 164% to £91.3m (2015: £34.6m)
· Net operating cash flow up 31% to £97.0m (2015: £74.2m)
Operational highlights
· Just Eat processed orders worth over £2.5bn for our Restaurant Partners (2015: £1.7 billion)
· Active Users increased 31% to 17.6 million (2015: 13.4m)
· Orders placed via mobile devices continued to grow, rising to 73% of Group orders (2015: 66%)4
· More than 50% of UK orders were processed through an Orderpad, the tablet-based order management platform, well ahead of the target to have one-third of UK orders processed through this technology by March 2017.
· UK marketplace expands to £6.1bn, a four year CAGR of 8%
· In line with the group’s strategy to be market leader, Just Eat acquired and integrated businesses in Italy, Spain and Mexico during the year, and in December, it announced the acquisition of SkipTheDishes in Canada.
· The proposed acquisition of hungryhouse in the UK was also announced in December, and remains subject to approval by the Competition and Markets Authority.
David Buttress, Chief Executive Officer, commented, “Just Eat posted another strong financial performance in 2016, with revenues up 52 per cent and Underlying EBITDA rising by 93 per cent. This reflects robust order growth across the business, strong cash generation and further underlying EBITDA margin expansion as we consolidated our market leadership in every geography where we operate.
'We continue to see strong growth in the UK, adding materially more revenues in absolute terms than the year before. Our international businesses also go from strength to strength; having become profitable in aggregate during the year6, they continue to grow rapidly and now represent over one-third of Group revenues. The acquisitions we made in Italy, Spain and Mexico have significantly enhanced our operations in those countries, and we are excited by the addition of SkipTheDishes to our Canadian business towards the end of the year.
'2016 was an important year operationally, positioning the business very positively for the future. We continued to invest in our technology, brand and people to expand the choice we offer consumers and the benefits we deliver to our Restaurant Partners. Our markets remain relatively under-penetrated, meaning there is considerable runway to generate sustainably profitable growth across the business.
Buttress concluded, 'Just Eat is in a very strong position, operationally and financially. We have the right business model to continue capturing further share of the £23.1 billion of delivered food ordered in our markets. In 2017, despite another year of planned investment, we expect material growth in both revenues and Underlying EBITDA of between £480.0 – 495.0 million and £157.0 – 163.0 million respectively.”