Chinese tech company Meituan announced on Thursday that it had recorded a net profit in the second quarter, largely due to the increased demand for food delivery services. The company reported a net profit of 4.69 billion yuan ($644.4 million) for the period ending in June, a significant improvement from the net loss of CNY 1.12 billion it experienced during the same period last year. This quarterly result exceeded the estimated net profit of CNY 3.35 billion, based on a poll conducted by FactSet.
Meituan’s revenue also saw a notable 33% year-on-year increase, reaching CNY 67.96 billion. Within this revenue growth, the delivery services for food and other products saw a 28% increase, generating CNY 20.37 billion. The number of on-demand delivery transactions rose by 32% to a total of 5.40 billion.
One of the key drivers behind Meituan’s success was the significant growth witnessed in its food delivery services. As consumer spending continued to recover from the impact of the pandemic and associated restrictions from last year, the company experienced strong growth in this particular sector. Additionally, Meituan’s hotel and travel-booking services also showed signs of recovery as domestic travel demand continued to rebound.
Meituan’s financial performance also saw an improvement in operating margin, which rose to 6.9% during the second quarter compared to -1.0% in the same period last year.
It is evident that Meituan’s focus on providing efficient and reliable food delivery services, as well as its ability to adapt to changing market conditions, has contributed significantly to its positive financial results. With the ongoing recovery in consumer demand, Meituan is well-positioned to continue its growth trajectory in the coming months.