Just Eat has said that it expects revenues to soar 40% this year but increasing investment will dent profits.
The group’s full-year revenues are expected to come in at the top end of the £740 million to £770 million forecast.
However, investment in Latin America and attempts to fend off rivals Uber Eats and Deliveroo hit profits.
The online takeaway marketplace operates in 12 countries and has been heavily investing in its network of drivers and cyclists.
Earnings will be at the lower end of the £165 million to £185 million range due to “investments in our dynamic LatAm markets in addition to our delivery initiatives.”
Chief executive Peter Plumb said: “Our delivery expansion plans are on track, ensuring we give customers exactly what they want, and I’m very pleased with the progress we are making against our strategic objectives.”
Analysts had expected Just Eat figures to suffer amid the heatwave over summer, however, summer saw the group recorded its first-ever weekend with more than one million orders.
“The group has delivered another strong quarter as we helped our 97,000+ restaurant partners serve over 54mln takeaways to millions of hungry customers,” said Plumb.
“Our increased investments in delivery, brand and data are already taking the Just Eat brands to more customers, making it easier for them to order from a widening choice, ensuring their takeaway moments are even more enjoyable.”
Liberum analyst Ian Whittake said the investment by the group was worth it.
“While Just Eat is the market leader in nearly all the markets in which it operates, the food delivery market has not fully transformed yet from phone to online and so the emphasis should be on growing share and growth generally,” he wrote in a note to clients.
Shares in Just Eat (LON: JE) are currently trading +5.43% at 640,60 (1252GMT).
