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Retail

Just Eat ups sales target but to spend more on promotion

The takeaway app group saw revenues jump 44% to £247mln

Just East PLC (LON:JE.) has raised its sales forecast for the current year after another bumper first half but higher promotional spending will affect margins.

The takeaway app group saw revenues jump 44% to £247mln in the half year to June, with international sales jumping to 43% of the total from 36%.

Profits increased 46% to £49.5mln as revenue per customer rose 15% and orders made on its app totalled £1.5bn, a 36% increase.

As a result of the stronger than expected first half, Just East now expects full year revenues also to be higher, at between £500mln-£515mln against a previous forecast of £480mln - £495mln.

Underlying profit guidance remained unchanged, as the additional revenue will be spent on "building momentum within the business and increased collaboration with branded UK restaurants."

Underlying profits for the year are expected to be between £157mln-£163 mln and in line with previous guidance.

Recent acquisition SkipTheDishes in Canada helped the numbers and did better than expected, Just Eat added.

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