Just Eat saw its market share rise by 10% in first half
Just Eat (LON:JET) saw the number of orders it received surge to 135m during the first half of 2021, an increase of 58m.
This was thanks in part to a sustained promotional push which also made an impact on the company’s balance sheet.
Just Eat made an underlying pre-tax loss in the UK of £60.6m compared to a £108m profit for the same period a year ago.
The food delivery company saw its market share rise by 10% as competition in the industry intensified as restaurants remained closed during lockdowns.
Commenting on Just Eat’s results, James Andrews, senior personal finance expert at money.co.uk, said: “Today’s news that Just Eat is expected to report profit loss will come as a further blow to the business, as its investors place increasing pressure on the sustainable future of the takeaway giant’s business model.”
“With shares struggling to return to anywhere near their October 2020 peak, some are predicting that share prices will tumble again. Shares fell by 9% after Just Eat’s company half-year earnings were released previously.”
The Just Eat share price is up by 2.72% during the morning session on Tuesday.
“With unease among the board, motions for a merger would hopefully allay some of the concern among Just Eat’s shareholders,” Andrews added. “This, along with careful investment in customer acquisition and expansion of the US strategy is likely what investors are looking out for to turn the group’s fortunes around. Whilst revenue grew by 53% compared to the same period last year, increased investment and spending has meant another profit loss for the company.”
“It’s also worth taking in the wider view of the sector, with Deliveroo’s shares soaring since it floated on the London Stock Exchange in March after interest and investment from international groups such as German company Delivery Hero.”
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