The Group is proving its worth as Revenues and market share continue to grow while raising full-year guidance.
Companies: Just Eat Plc
Just Eat (LON: JE/) continues to go from strength to strength with the release of its Q3 17 trading update today, which shows impressive growth numbers from its operations both in the UK and abroad.
The results reported Revenues of £138.6m, up 47% from the £94.5m reported in Q3 16. The strong Revenue growth was thanks in part to total order growth of 29%, bolstered by the acquisition of Canadian delivery service Skip the Dishes in December last year. Skip the Dishes reported "triple-digit pro-forma order growth".
UK order numbers were up 22% to 26.2m.
The proposed acquisition of Hungryhouse from German parent company Delivery Hero, which was first announced 10 months ago was finally cleared by the FCA earlier this month. The deal stalled due to concerns it would hinder fair deals for the companies' restaurant partners.
Given today's results Management has raised its previous full-year Revenue guidance of "£500-515m to between £515-530m", an increase of around 3%. It also said underlying EBITDA guidance will remain between £157-163m, signalling a small erosion in margins.
The stock was up over 4% at the time of writing to 770p.
Since it listed in 2014 Just Eat's share price has grown over 160% from 290p to today's price of 770p. It currently trades at a 12-month forecast rolling PE ratio of 34x versus the industry median of 18x and has a Market Cap of over £5bn.
Today's update shows the Group is on track to meet consensus' full-year Revenue forecasts of £512m, up 14% from the £450m reported in FY16. It is also forecast to make a Net Profit of £111m this year, up 32% from £84m last financial year.
