Food delivery company Just Eat reported a 58% surge in revenue in 2015; however, profits dropped by 39% to £34.6m in the year to 31 December. Just Eat explained the decline was due to a one-off M&A (mergers and acquisitions) gain in 2014 that led to operating profits soaring by 86% to £35.5m.
The company told investors that orders jumped by 57% and saw a jump in sales to £247.6m (€317.4m, $345.7m). Just Eat expanded its business and teamed up with third parties in 2015, signing £1.7bn worth in orders with restaurants.
"These results prove the strength of our model, validate our value-enhancing approach to M&A and provide an excellent platform for continued expansion in 2016," David Buttress, the group's chief executive, said in a release.
Since the launch of Deliveroo in 2013, the traditional food delivery model was disrupted, adding to competition in the market. As competition intensifies, in Europe especially, Just Eat turned to M&A again over the last months.
On 5 February, Just Eat announced it had bought two European divisions from Berlin-based start-up Rocket Internet and two American businesses from German Foodpanda, whose biggest investor is Rocket Internet. In total, Just Eat will pay €125m from cash resources.
"The global online takeaway market continues to grow as consumers become ever more demanding; wanting more choice and greater convenience," Buttress said. "Just Eat has been at the leading edge of developing and growing the online marketplace for takeaway food delivery as it responds to these changing trends."