Takeaway delivery marketplace Just Eat (JE) has posted a 41% jump in third quarter revenues, but warned its investments back into the business mean full years profits will be at the lower end of expectations.
Revenues were up 41% in the third quarter to £195.3m driven by strong marketplace order growth, accelerating growth of delivery orders and the inclusion of Hungryhouse.
Group orders were up 27% to 54.7 million with more than 57% of orders being made by its app.
UK orders increased by 16% to 30.3m, driven by strong trading in September which mitigated the impact of exceptionally hot weather in July and August.
It saw continued growth in its Canadian food delivery business SkipTheDishes and its Australian business completed the integration of SkipTheDishes’ delivery platform with Menulog’s marketplace.
The board now anticipates full year revenues to be towards the top end of its previous £740m to £770m range.
However, underlying EBITDA is expected by be to be towards the lower end of the previously announced £165m to £185m range, primarily reflecting investments in LatAm markets in addition to delivery initiatives.
Peter Plumb, CEO of Just Eat commented: “The Group has delivered another strong quarter as we helped our 97,000+ restaurant partners serve over 54 million takeaways to millions of hungry customers. Our increased investments in delivery, brand and data are already taking the Just Eat brands to more customers, making it easier for them to order from a widening choice, ensuring their takeaway moments are even more enjoyable.
“Our delivery expansion plans are on track, ensuring we give customers exactly what they want, and I’m very pleased with the progress we are making against our strategic objectives.”
Forecourt operator Applegreen (APGN) has announced its €362m deal to buy a controlling stake in the Welcome Break service station business completed yesterday.
Applegreen now holds a 50.01% stake in Welcome Break and will be responsible for its strategy and operational matters.
Hilton Food Group (HFG), the supplier of packaged meat to Tesco, has updated the market on its trading from 16th July to date.
Hilton said performance has been in line with the board’s expectations, with continued growth through additional volumes. It added it has also made “significant strategic progress” with the recent announcement of a joint venture with Dalco, the Dutch vegetarian product company.
In the UK, turnover has continued to grow relative to last year driven predominantly by Seachill, whilst its Irish business has continued to experience “encouraging” top-line growth.
In Seachill, the group won new business to supply shellfish to Tesco, as well as to supply coated fish to Waitrose from March 2019.
Turnover in Denmark remains broadly flat, with Sweden below prior year. Holland remains a challenging market, but its joint venture in Portugal is also continuing to show good progress, while Central Europe showed sustained improvement.
It has seen double-digit volume growth in its Australian business, with the development work in relation to the new Queensland plant has continued ahead of plan and production start-up now expected from the fourth quarter 2019.
Hilton stated: “The group’s financial position remains strong and we continue to explore opportunities to invest in and to grow the business in both domestic and overseas markets.”
Finally, Irish food and sports nutrition group Glanbia (GLB) has reported 6.7% volume growth in the third quarter and reiterated full year earnings guidance.
Glanbia said this reflected good demand across Glanbia Performance Nutrition and Glanbia Nutritionals.
However, pricing declined by 4.1% in the period largely as a result of lower year-on-year dairy markets which is also benefitting input costs meaning full year margins in GPN and GN will be in line with prior year.
In the nine months ended 29 September 2018, wholly owned revenue from continuing operations increased 3.7%, constant currency. On a reported basis, reflecting the weaker US Dollar Euro foreign exchange rate, revenue decreased by 2.6% when compared to the same period in 2017.
Its performance nutrition segment delivered revenue growth of 4.7% in the first nine months of 2018. This was driven by volume growth of 6.7%, the Body & Fit acquisition delivering 2.4%, offset by a pricing decline of 4.4%.
Glanbia nutrition delivered revenue growth of 3.0% in the first nine months of 2018. This was driven by a volume increase of 6.8% offset by a price decline of 3.8%.
Siobhán Talbot, group MD at Glanbia, said: “The year is progressing as planned and good delivery in the third quarter resulted in volume growth of 6.7% in the first nine months of 2018 from our wholly-owned continuing operations.
“We continue to execute our strategy and, in addition to growth in our core business, we recently announced the acquisition of SlimFast which will further enhance our portfolio. We reiterate our full year guidance of 5% to 8% growth in adjusted earnings per share, constant currency, for the continuing group in 2018.”
If the average Euro US Dollar foreign exchange rate for the full year remains at similar levels to the average rate for the first nine months of 2018 Glanbia expects an approximate 5% translational headwind to full year reported results.
On the markets this morning, the FTSE 100 is down 0.3% to 7,105.2pts.
Just Eat shares are up 3.2% to 627p, Hilton Food Group shares are down 1.5% to 908p and Glanbia is down 3.5% to €15.08.
Early risers include Premier Foods (PFD), up 2.1% to 38.9p, Marston’s (MARS), up 1.8% to 2,423.8p and Associated British Foods (ABF), up 1.6% to 2,423.8p.
Fallers include Dairy Crest (DCG), down 3.2% to 462.8p, Unilever (ULVR), down 1% to 4,105.5p and Diageo (DGE), down 1% to 2,682p.
Yesterday in the City
The FTSE 100 ended a grim month on a positive note, rising 1.3% yesterday to close October back up to 7,128.1pts as global markets improved on a tech stock rally.
In the UK, WH Smith surged a further 6.9% to 1,945p as investors continued to back its £155m acquisition of US travel retail chain InMotion.
Other strong risers yesterday included Ocado (OCDO), up another 1.7% to 855.2p after being boosted by more detail emerging from its tie-up with Kroger, B&M European Value Retail (BME), up 1.2% to 416.8p and Just Eat (JE), up 3.5% to 607.6p ahead of its third quarter update this morning.
Also on the up were Hotel Chocolat (HOTC), up 4% to 272.5p, Glanbia (GLB), up 3% to €15.62 and Applegreen, up 2.5% to 530p.
Despite the wider FTSE 100 rally, the index’s consumer stocks had a tougher day.
Fallers included British American Tobacco (BATS), down 1.6% to 3,393.5p, Marks & Spencer (MKS), down 1.3% to 296p, Imperial Brands (IMB), down 1% to 2,653p and GlaxoSmithKline (GSK), down 1.7% to 1,511.2p.
Also falling were Unilever (ULVR), down 0.8% to 4,146.5p, Tesco (TSCO), down 0.8% to 213.3p, Greene King (GNK), down 1.7% to 482.6p and PayPoint (PAY), down 3.8% to 791p.