Meituan Posts Second-Quarter Profit as Food-Delivery Demand Rebounds

By Kosaku Narioka

Meituan said Thursday that it posted net profit in the second quarter thanks partly to a recovery in demand for food-delivery services.

The Chinese tech company said net profit was 4.69 billion yuan ($644.4 million) for the quarter ended June, compared with a net loss of CNY1.12 billion a year earlier. The quarterly result beat the estimate of CNY3.35 billion taken from a poll of analysts by FactSet.

Meituan said revenue rose 33% from a year earlier to CNY67.96 billion.

Revenue from its delivery services for food and other items grew 28% to CNY20.37 billion as the number of on-demand delivery transactions increased 32% to 5.40 billion.

The company said its food-delivery services showed strong growth as consumption continued to recover from a slump caused by the pandemic and related restrictions last year.

Its hotel and travel-booking services also experienced growth as domestic travel demand continued to rebound, Meituan said.

Operating margin improved to 6.9% in the second quarter from negative 1.0% in the year-earlier period.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

August 24, 2023 05:27 ET (09:27 GMT)

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