China food delivery firm Meituan’s Q3 revenue beats estimates. Meituan (3690. HK), China’s most significant meal delivery company, reported a higher-than-expected 22.1% increase in sales for the third quarter on Tuesday. This move comes as the company continues to recover from the pandemic damage that it suffered in the previous year.
With an app that offers services such as bike-sharing, ticket booking, and mapping, the platform recorded revenue of 76.47 billion yuan ($10.69 billion) from June to September. This is a significant increase from the 62.62 billion yuan that it reported for the same period in the previous year.
The outcome was much higher than the 75.59 billion average of 15 expert projections that LSEG collected. Compared to the previous year’s profit of 1.22 billion yuan, Meituan reported a profit of 3.59 billion yuan for the current year.
The COVID-19 containment measures, which included limits on mobility in critical cities and limited delivery services, impacted earnings for the previous year’s third quarter.
Demand continues to be lackluster, and China’s economic recovery from the epidemic has been losing momentum over the past few months. In the past, Meituan CEO Wang Xing predicted that the meal delivery industry would face more challenges during the third quarter owing to the presence of macroeconomic headwinds.
Meituan Instashopping, a non-food delivery service, and other core local commerce businesses reported an increase in revenue of 24.5% to 57.69 billion yuan during the quarter.
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