Meituan Reports Over $6.9B Revenues in Q1, Up 25% YoY
Meituan, China’s leading e-commerce services platform, announced on Thursday its unaudited consolidated results for the three months ended March 31, 2022. During this quarter, the company’s revenues increased by 25% to 46.3 billion yuan ($6.94 billion) from 37.0 billion yuan compared to the same period of 2021.
The company’s food delivery, in-store, hotel & travel segments brought in an aggregate operating profit of 5.1 billion yuan for the first quarter of 2022, up from 3.9 billion yuan for the same period of 2021. On the other hand, operating losses for new initiatives and other segments widened on a year-over-year basis but narrowed on a quarter-over-quarter basis.
The company’s adjusted EBITDA and adjusted net loss improved on both year-over-year and quarter-over-quarter basis to negative 1.8 billion yuan and 3.6 billion yuan for the first quarter of 2022, respectively. It held cash and cash equivalents of 35.4 billion yuan and short-term treasury investments of 68.0 billion yuan as of March 31, 2022.
In particular, Meituan achieved healthy growth for its food delivery segment in the first quarter of 2022, despite some external challenges. Segment revenue increased by 17.4% year over year to 24.2 billion yuan with the increase mainly due to increases in order volumes and average order values.
Meituan pointed out that couriers are at the core of its food delivery business. To ensure sufficient delivery capacity and a safe working environment for couriers, the company offered delivery personnel free COVID-19 testing alongside local governments and free accommodation or rest stations for those living in locked-down communities. In addition, the company provided smart safety helmets for couriers in several cities.
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In the first quarter of 2022, the revenue of the company’s in-store services increased by 15.8% year-over-year to 7.6 billion yuan, and operating profit increased by 26.4% year-over-year to 3.5 billion yuan, with operating margin sitting at 45.6%.
For new initiatives and other new ventures, such as Meituan Select and Meituan Grocery, the goods retail businesses remained and will continue to be a key investment area of the company. In the first quarter of 2022, segment revenue increased by 47.0% year-over-year to 14.5 billion yuan, mainly driven by the expansion of the goods retail businesses.
Meituan Founder and CEO Xing Wang said, “We achieved healthy growth across various business lines in Q1, despite the spread of Omicron to more regions in China since March. Our long-term investments in our technological capabilities coupled with our nationwide on-demand retail system have enabled Meituan to play a unique role during the COVID resurgence.”
“Meituan aims to focus on our ‘Retail + Technology’ company strategy, drive innovation and improve the quality of our products and services. This will develop a better ecosystem for the growth of new industries, new businesses and new models for China’s retail sector. In addition, we will continue to deliver greater value to our merchants and consumers,” concluded Wang.