Meituan revenue was up 25% in Q1 2022

Consumer Staples Author: Contributor, 施放, Fuller Wang Jun 02, 2022 05:13 PM (GMT+8)

Meituan's Q1 2022 financial report indicated its increase in several sectors of businesses. Its losses were decreasing, with increased revenue, users, businesses, and transactions.


On June 2, 2022, Meituan announced its financial report for Q1 2022. In this quarter, the revenue was CNY 46.27 billion (USD 6.95 billion), up 25% year over year compared with CNY 37.02 billion from the same period last year. The market expectation was CNY 45.29 billion, which indicated that Meituan reached the investors’ expectations. Its net loss was CNY 5.7 billion, compared with a loss of 4.85 billion yuan in Q1 2021. The adjusted net loss was 3.59 billion, down 7.7% over the previous year compared with CNY 3.89 billion in Q1 2021. The operating loss of its branches was CNY 9 billion, showing a gradual decrease. Its operating loss ratio was 62%.

Meituan reported 692 million transaction users in Q1 2022, up 22% year over year. The order volume of grocery shopping increased by nearly 120% year over year, and the daily order volume reached a record high in Q1 2022. The revenue from food delivery was CNY 24.16 billion, up 17% compared with the same quarter last year. The number of food delivery was 3.361 billion, up 16% year over year. Its 1P model accounted for 65% of total transactions, which is similar compared with the same quarter of last year. The quarterly distribution cost was CNY 17.18 billion, an increase of 12% year over year. Meituan concluded the increase was attributed to the increase in the number of transactions, the increase in the unit price of the customer, and the increase in the number of active merchants in online marketing. 

In this reported quarter, the revenue of its new business segment reached CNY 14.5 billion, up 47% year over year. This part of the revenue was mainly driven by the expansion of the commodity retail business.

Similar to the status of Ubereats and Doordash in the United States, Meituan was the only several companies that were mainly doing food delivery. Similar companies in China that are related to food delivery also have ELeMa, KouBei, and Baidu. However, Meituan’s marketing size is much larger than the several listed above. Meituan also participated in the food delivery service during the shut-down of several regions in China due to COVID-19. Its automatic delivery vehicles showed a huge success. From the beginning of April to May 24 this year, a total of 703,000 orders were delivered.