Sales at online food delivery company Just Eat have risen sharply despite what it called “softer consumer spending” in the UK.
Sales jumped 25% to £247.5m in the three months to 30 September, although this was a slower rate of growth than in the previous half-year.
Group orders rose 16% to 62 million.
AJ Bell investment director Russ Mould said: “While its double-digit growth would be the envy of many companies, Just Eat hasn’t delivered enough to leave investors feeling satisfied.
“Ultimately today’s numbers show growth has slowed since the first half in the third quarter of the year.
“The market has been a bit grumpy with Just Eat since the summer when the group agreed its merger with Dutch firm Takeaway.com – with the 15% premium to the company’s previous close seen as a very miserly portion.
“The company still expects this deal to go through before the end of 2019, pending a shareholder vote in December, to create one of the largest food delivery firms in the world.
“However, bigger isn’t always better and some observers have pointed to the risks of indigestion thanks to pressure on consumer spending, the competitive nature of Just Eat’s core market and its historic underinvestment in delivery services.
“Ultimately shareholders will decide the fate of the deal and there is still some pretty healthy scepticism over whether the transaction will complete.”
Leave a Comment