Meituan’s profit in Q4 nearly tripled as revenue soars 20% despite competition

Published 21/03/2025, 10:28
©  Reuters

Investing.cm -- Meituan (HK:3690) reported a sharp rise in fourth-quarter earnings, with profit nearly tripling as revenue climbed, extending its streak of strong performance despite growing competition and a challenging economic backdrop in China.

The largest food delivery company in China posted a net profit of 6.22 billion yuan ($858 million) for the quarter, up from 2.22 billion yuan in the same period a year earlier. However, the result came in below the 7.94 billion yuan forecast by analysts surveyed by Visible Alpha.

Meituan shares closed 0.30% lower in Hong Kong trading Friday. 

Revenue for the quarter rose 20% year-over-year to 88.49 billion yuan, topping the consensus estimate of 87.77 billion yuan. Sales from the core local commerce business climbed 19% to 65.57 billion yuan, driven by deeper online engagement and strong consumer demand.

Revenue from Meituan’s newer business lines, which include initiatives beyond food delivery, grew 23% in the quarter. The segment’s operating loss narrowed significantly to 2.18 billion yuan.

“We will expand our investments in cutting-edge technologies and the relevant applications, such as AI, unmanned aerial delivery, and autonomous delivery vehicles,” the company said. “In the long run, we are convinced that technology will continue to transform the retail industry.”

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