Feb 28 Reuters Just Eat Takeaway on Wednesday forecast a nearly 40 jump in its 2024 core earnings, ahead of expectations, banking on strong growth in its key British and Irish markets boosted by better delivery efficiency and simplified delivery operation.

Food delivery firms have been struggling to shift to stable profitability amid rampant customer churn rates after the sector boomed during the pandemic.

However, demand seems to be recovering as the frequency of orders via takeaway apps picks up, helped by the companies39; broader offerings with the addition of grocery and retail categories.

Europe39;s biggest food delivery company by revenue sees adjusted earnings before interest, taxes, depreciation and amortisation EBITDA of about 450 million euros 487 million in the current year, while analysts polled by LSEG were expecting 398 million euros.

Its adjusted EBITDA soared to 324 million euros last year, compared to 19 million a year earlier.

Just Eat said the EBITDA margin in Britain and Ireland was rapidly approaching a similarly high level as Northern Europe, which makes up a lion39;s share of its earnings.

The group expects its gross transaction value, a common metric for food delivery firms, to grow by 2 to 6 in 2024, excluding North America where it continues to explore a partial or full sale of its Grubhub business.

Just Eat, which broke even on free cash flow in the second half of last year, expects its cash flow to stay positive in 2024 and beyond.

1…