Just Eat reported respectable full-year figures, but the firm expressed concerns about the digital sales tax.
Annual revenue jumped by 43% to £779.5 million. Earnings increased by 6% to £173.9 million. The group have been heavily investing in the company, and that is why there was big jump in sales. The outlook is upbeat too, as the company predicts that 2019’s revenue will be between £1 billion and £1.1 billion, and the earnings are expected to be in the region of £185 million to £205 million. The group’s Canadian operation is expected to register a profit next year. Just Eat are worried about the digital sales tax that is in the pipeline, and they pointed out they are paying full tax on profits in the UK. Cat Rock Capital Management have been pushing for Just Eat to merge with Takeaway.com, but Just Eat are content to hold their own.
The firm had a strong third quarter, as revenue soared by 41%. UK orders rose by 16% and the company confirmed that over half of orders were made via the app. The possibility of a tie-up between Uber and Deliveroo has prompted the company to up its investment in the business, particularly in Latin America. The group’s decision to ramp up investment to fend off potential competition might have been a bit premature, after it was reported in November that Uber Eats and Deliveroo are ‘miles part’ when it comes to agreeing on a valuation, but capital expenditure is usually money well spent.
The takeaway platform service has pledged to improve on the hygiene front. The firm will remove all restaurants with ratings of zero from the platform, and outlets with a food hygiene rating of two or lower will be given financial assistance to raise their standard. New eateries that want to be added to Just Eats service will have to meet at least three stars for food hygiene. The initiative should improve the group’s image, and encourage customer loyalty in the long-run.