Just Eat: pre-tax profits rise by 164%
Online take away service Just Eat will be losing CEO David Buttress this month, but its full year results for 2016 go a long way to reassuring investors that the company is in a robust position to pursue further growth. Just Eat’s share price rose by 5% on Tuesday, after reporting stellar results that included a massive 164% rise in pre-tax profit! Revenues also rose by an impressive 52%.
Just Eat is up 8% over the last 5 days
SOURCE: Yahoo Finance
Speaking about Just Eat’s results as CEO for the last time, David Buttress said:
“As you grow you get the benefits of scale, that’s the first place margin evolution is coming from. And the second is that we’re now profitable in eight countries.”
He added that, despite mergers and acquisitions playing a big part in the companies success so far “we feel very good about our position, we don’t need to do any further M&A, and will continue to focus on our current business.” Under Mr. Buttress, the company has aggressively pursued growth via the acquisition of its rivals.
Just Eat is Europe’s largest online takeaway service with over 17 million customers. It’s highly successful business model sees it operate as a middleman between restaurants and customers, connecting the two via its website, and offering a competitive delivery service. The company has a strong line in innovation – it is the first delivery service to experiment with ‘delivery robots’ – and, despite slipping in the first part of this year, its share price has risen 37% so far in the last 12 months.
Dominion holds Just Eat in its Global Trends Ecommerce Fund.
If you would you like to receive the Newsfeeds daily, please click here to sign up now!Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
- Click here to print this story: Print
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.