Just Eat shares fall as “warm” spell stymies UK growth
Online food delivery business Just Eat saw its share price fall by 4.9 per cent today after it reported slower than expected growth for the first quarter of the year.
The company blamed a warm weather spell for slower growth in sales in the first quarter of the year.
The London-listed firm said orders increased by 21 per cent to 61.4 million, with group revenues up by 28 per cent year-on-year to £227.9m.
UK orders increased by 7.4 per cent to 31.9 million, it said, adding that “growth was impacted by three factors: a strong comparator, including Hungryhouse before integration and expected attrition of their customer base; the unseasonably warm weather in February; and Easter falling entirely in Q2 this year.”
The online takeaway firm said it expected to see an improvement in UK order growth during the remainder of the year.
Outside the UK, orders grew by 40 per cent to 29.5 million, fuelled by good growth in Canada, Italy, Switzerland and Ireland.
Despite the slow first quarter, Just Eat reiterated its guidance of full year 2019 revenue in the range of £1.0 billion to £1.1 billion.
"Just Eat is on the right path to be the leading hybrid marketplace for online food delivery and we are confident in the delivery of our strategy”, said Peter Duffy, Interim CEO.
“Many of our international markets have performed very well in the period although, as expected, we saw softer UK order growth in the quarter. We are making good progress and continue to execute at pace."