Net Profit: Meituan, the Chinese company, is expected to report a net profit of 3.35 billion Chinese yuan ($459.3 million) for the quarter ending June 30th. This is a significant improvement from a net loss of CNY1.12 billion during the same period last year.
Revenue: Analysts estimate that Meituan’s second-quarter revenue has increased by 31% compared to the previous year, reaching CNY66.82 billion.
Key Points to Consider:
Delivery Services Growth
In the first quarter, Meituan experienced strong growth in its delivery services. The revenue from delivery services rose by 19% to CNY16.91 billion as the number of on-demand delivery transactions increased by 15% to 4.27 billion. This growth was primarily driven by the continued recovery in demand for food delivery. Investors are eager to see the pace of revenue growth in this crucial segment.
Improved Operating Margin
Meituan’s operating margin showed improvement in the first quarter, increasing to 6.1% compared to a negative 12.1% in the same period last year. This improvement can be attributed to an abundant supply of couriers for its delivery services, along with a recovery in local consumption. Investors are closely monitoring any further recovery in profitability.
Marketing Expenses
In the first quarter, Meituan’s selling and marketing expenses grew by 15% year-on-year, totaling CNY10.43 billion. This increase was in line with the 27% growth in revenue. Investors are interested in observing the pace of growth in promotion and advertising expenses.
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