Meituan, a leading Chinese e-commerce and food delivery platform, announced its impressive second-quarter results for the period ending in June. The company reported a net profit of 4.69 billion yuan ($644.4 million), a significant improvement from the net loss of CNY1.12 billion recorded during the same period last year. This exceeded the estimated net profit of CNY3.35 billion from analysts polled by FactSet.
In terms of revenue, Meituan experienced a remarkable 33% growth year-on-year, reaching CNY67.96 billion. This figure surpassed the estimated revenue of CNY66.82 billion from the FactSet poll.
Delivery Services Boost Revenue
One of the key drivers behind Meituan’s impressive performance was its delivery services. Revenue from food and item delivery witnessed a substantial 28% increase, amounting to CNY20.37 billion. This growth was fueled by a 32% rise in on-demand delivery transactions, totaling 5.40 billion. Meituan attributes this success to the strong recovery of food delivery services, as consumer consumption continued to rebound from last year’s pandemic-induced slump.
Decrease in General and Administrative Expenses
Meituan also achieved significant savings in general and administrative expenses. These expenses decreased by 15% compared to the previous year, amounting to CNY2.14 billion. The reduction was primarily driven by lower employee benefit expenses.
Surge in Marketing Expenses
While Meituan successfully managed its general and administrative expenses, marketing expenses saw a marked increase. The company witnessed a substantial 62% surge in selling and marketing expenses, reaching CNY14.55 billion. This was primarily due to investments in user incentives, promotions, and advertising. The pace of this increase significantly outpaced the overall revenue growth.
Overall, Meituan’s strong second-quarter results demonstrate its ability to adapt to the evolving market conditions and capitalize on the growing demand for delivery services. With a solid net profit and impressive revenue growth, Meituan continues to cement its position as a dominant player in the Chinese e-commerce sector.