China’s leading food delivery company Meituan beats estimates with focus on value, ET BrandEquity
Meituan, China’s leading food delivery group, on Thursday reported a larger-than-expected 25% increase in quarterly revenue, targeting cost-conscious Chinese consumers with better value for money products and services. price.
A lackluster economic recovery in China since the COVID-19 pandemic has led more companies to turn to low-cost and discounted products in the world’s second-largest economy.
“As consumers increasingly prioritize value for money, we have improved our price competitiveness,” Meituan CEO Wang Xing told analysts in a call after releasing quarterly results. of the company on Thursday. Discounts via live streaming are a growing priority, he said.
Meituan, which operates an app providing services ranging from bike sharing to ticket booking to cards, reported revenue in the three months ended March 31 of 73.3 billion yuan (10 .11 billion dollars), compared to 58.62 billion yuan a year earlier.
That beats LSEG’s average estimate of 70.32 billion yuan from 16 analysts. Profit for the quarter reached 5.2 billion yuan, up 59.9 percent from 3.36 billion yuan a year earlier.
In April, shortly after Wang took over the international business, Meituan began advertising jobs in Riyadh for food delivery platform KeeTa, which launched a year earlier in Hong Kong.
Wang stressed that exploring new markets for KeeTa was still in the “early stages,” with Gulf countries, European and Southeast Asian markets all under consideration.
“Global expansion will be very important to Meituan’s future long-term growth, but from a financial point of view, we need to be careful,” Wang said.
In the first quarter, KeeTa was the top food delivery app in Hong Kong in terms of order volume, with a market share of 43%, according to data from analytics firm Measurable AI.
Meituan is China’s largest delivery platform, with a 69% share of the 1 trillion yuan market, according to data from researcher ChinaIRN.
Lululemon’s comparable sales rose 6%, a rare single-digit increase for the company that has seen double-digit growth over the past two years. Same-store sales in the Americas remained flat from last year, while they jumped 26% in mainland China.
