Meituan’s Q2 Financial Report Shows Strong Growth: Revenue Reaches 82.3 Billion RMB, Daily Average Delivery Orders Exceed 68 Million
Aug 29, 2024 – In its latest financial report, Meituan (stock code: 3690.HK) has announced robust growth for the second quarter of 2024. The Chinese technology company, known for its food delivery and local services platform, reported revenue of 82.3 billion RMB for the quarter, marking a year-on-year increase of 21.0% and a sequential increase of 12.2%. The adjusted net profit surged by 77.6% year-on-year to 13.6 billion RMB.
Revenue and Profit Growth
For the first half of 2024, Meituan achieved a total revenue of 155.5 billion RMB, representing a 22.9% increase compared to the same period last year. The strong performance in the second quarter was driven by the company’s core local business, which saw revenue growth of 18.5% year-on-year to reach 60.7 billion RMB. This segment accounted for approximately 74% of the total revenue during the period. The operating profit for the core local business grew by 36.8% to 15.2 billion RMB, with an operating profit margin that increased by 3.3 percentage points to 25.1%.
Business Expansion and Innovation
Meituan’s团购 service expanded to include a wider range of affordable products and services. During the quarter, the company leveraged various holiday promotions and marketing activities to drive growth in leisure and entertainment categories, achieving a double-digit increase in both Gross Transaction Value (GTV) and order volume.
The company’s flash-commerce service, Meituan闪购, also experienced significant growth by partnering with more fast-moving consumer goods, apparel, alcohol, and beverage brands. These partnerships catered to the immediate needs of consumers in different scenarios, including festivals, travel, and camping. The innovative alcohol retail model, Wai Ma Song Jiu, achieved a good GTV growth during the quarter.
Additionally, Meituan launched a pilot program for Shen Member, a membership service that integrates dining, accommodation, and entertainment services. By the beginning of July, the number of participating merchants reached 5 million.
User and Merchant Growth
Meituan’s annual active users and merchant base reached new highs during the quarter. The company’s instant delivery orders reached 6.2 billion, with an average of over 68 million orders per day. This growth was attributed to the increasing trend of instant retail as a new consumer trend.
Digital Transformation Initiatives
Meituan continued to support the digital transformation of various retail entities. The Brand Satellite Store initiative attracted major brands like Laozijai and Haidilao, offering services such as commission returns, traffic support, and operational guidance. By the end of June, over 800 satellite stores had been opened across the country.
Meituan Lightning Warehouse provided comprehensive support to merchants through online operations, pricing strategies, traffic support, and fulfillment services, expanding to more regions during the quarter. Meituan Pharmacy also launched a new digital solution, the HEALTH growth model, aimed at helping pharmaceutical companies build brand influence and enhancing pharmacy service efficiency.
Conclusion
During the quarter, the local business market further unleashed its vast growth potential, and all our business segments achieved healthy growth, said Wang Xing, CEO of Meituan. The company’s focus on digital transformation and innovative services has paid off, with a strong performance in both revenue and profit. As the traditional consumption peak season approaches, Meituan is well-positioned to continue its growth trajectory, leveraging its retail+technology strategy to drive the digital upgrade of the retail industry.
The robust financial results and strategic initiatives indicate that Meituan is not only weathering the challenges of the competitive market but is also poised to capture more growth opportunities in the future.
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