2017 Full Year Results
Exceeding expectations whilst investing for future growth
Just Eat plc (LSE: JE.) today reports its results for the year ended 31 December 2017, with revenue up 45% to £546 million and Underlying EBITDA1 up 42% to £164 million.
- Excellent Group performance underpinned by strong execution across our markets
- UK business continues to excel and is further strengthened by the acquisition of Hungryhouse
- Our 10.5 million Active Customers2 purchased £1.9 billion worth of food from our 28,400 entrepreneurial Restaurant Partners, delivering UK revenue of £304 million
- The Just Eat brand reached its highest ever brand awareness due to innovative brand and marketing initiatives, including X Factor sponsorship and the latest Magic TV campaign
- Continued expansion of delivery pilots with growing number of branded restaurant chains3
- Continued strong momentum internationally
- International revenue grew 75%, now representing 44% of Group
- SkipTheDishes delivered 264% pro forma4 order growth, becoming the second largest business in the Group
- France and Italy both surpassed 1 million Active Customers during the year
- Strong cash flow leaves us in a position of great strength, enabling investment in significant new opportunities
- Orders up 26% to 172 million
- Revenue up 45% to £546 million, up 30% on an organic basis5
- uEBITDA1 up 42% to £164 million
- Non-cash impairment charge of £180 million recognised against Australia & New Zealand goodwill
- Excluding the non-cash impairment, profit before tax of £104 million
- Adjusted basic earnings per share6 up 38% to 16.8p
- Net operating cash flow up 72% to £167 million
- Statutory loss before tax of £76 million; basic earnings per share loss of 15.2p
Peter Plumb, Chief Executive Officer, commented:
“2017 was a record year for Just Eat. We helped 21.5 million customers order 172 million takeaways around the world, growing Group revenue by 45% to £546 million. More Restaurant Partners joined our platform, increasing the breadth of choice for our customers and strengthening the Group’s geographical coverage to over 82,000 restaurants. As the new CEO, I will be increasing our investment in brand, Developing Markets and delivery services that will be engineered to complement our thriving marketplace business by bringing more choice to our takeaway-loving Customers.”
Just Eat is in a strong position both operationally and financially. Our successful marketplace business remains the core driver of growth and is on course to deliver uEBITDA of £215 – 235 million in 2018. We will expand our investments in brand, Developing Markets and delivery services, resulting in Group revenue of between £660 – 700 million and uEBITDA of £165 – 185 million in 2018.
1 The main measure of profitability used by management to assess the performance of the Group’s businesses is Underlying EBITDA (“uEBITDA”). It is defined as earnings before finance income and costs, taxation, depreciation and amortisation (“EBITDA”), and additionally excludes long-term employee incentive costs, exceptional items, foreign exchange gains and losses, other gains and losses, and the share of results from associates falling outside this definition.
2 Defined as those Customers that have placed at least one order within the last 12 months.
3 “Branded restaurant chains” denotes Quick Service Restaurant branded chains, for example KFC, Burger King and Subway.
4 In order to give a more meaningful comparison, pro forma refers to the orders processed by SkipTheDishes during the calendar year 2016, rather than from the date of its acquisition by the Group in December 2016.
5 Organic growth excludes the impact from the acquisition of SkipTheDishes, the disposal of our Benelux businesses in 2016, and currency movements.
6 Adjusted basic earnings per share is the main measure of earnings per share used by the Group and is calculated using an underlying profit measure attributable to the equity shareholders. It is defined as profit attributable to the equity shareholders before longterm employee incentive costs, exceptional items, other gains and losses, foreign exchange gains and losses, amortisation of acquired intangible assets, share of results from associates below uEBITDA, and the tax impact of these adjusting items.