Meituan’s adjusted net profit climbs 270% to record high in second quarter, but stiffer competition looms
- The Beijing-based company reported a 33.4 per cent year-on-year jump in revenue to US$9 billion in the June quarter
- Peak daily orders for its on-demand local services crossed 11 million, thanks to a growing user base and more frequent purchases
Chinese food delivery giant Meituan said its adjusted net profit in the second quarter more than tripled from a year ago to an all-time high, thanks to a surge in orders as more Chinese consumers were enticed by deals offered by the platform.
The Beijing-based company reported a 33.4 per cent year-on-year jump in revenue to 68 billion yuan (US$9 billion) in the June quarter. Revenue in the first half reached 126.5 billion yuan, up 30.2 per cent.
Adjusted net profit for the three months ended June 30 jumped 272.2 per cent from the same period last year, while net profit in the first six months reached 13.2 billion yuan.
Meituan was one of the biggest beneficiaries of the post-pandemic recovery in sectors such as tourism and restaurants, according to Li Chengdong, founder and chief analyst at e-commerce consultancy Dolphin.
The strong growth comes on the back of a surge in order volume, driven by a mix of factors including a robust rebound in store openings after the pandemic, the solid performance of merchants on the platform, and Meituan’s successful experiments with e-commerce live-streaming, according to a note on Thursday by Jamie Chen, analyst with investment research firm Third Bridge.