Meituan Swings to 46.7 Billion Yuan Loss in H1 Despite Strong Q2 Recovery
AM730 · 1 SOURCESabout 2 hours ago2 MIN
Summary
Meituan reported a significant turnaround in its first-half financial performance, shifting from profit to loss amid challenging market conditions. The company posted a net loss of 46.72 billion yuan for the first six months of 2024, a stark contrast to the 104.22 billion yuan profit recorded during the same period last year . Total revenue reached 195.682 billion yuan, representing a year-on-year increase of 10.1% . On a non-IFRS basis, the adjusted net loss stood at 24.44 billion yuan compared to an adjusted profit of 124.42 billion yuan in the prior-year period . Despite the weak first half, the second quarter demonstrated a strong rebound, with net profit soaring approximately 4.9 times year-on-year to 2.155 billion yuan . The company's core local commerce segment showed particular strength, with operating profit climbing 52.3% year-on-year to 5.668 billion yuan in the second quarter .
Key Points
- Meituan's first-half net loss reached 46.72 billion yuan, reversing from a 104.22 billion yuan profit in the same period last year
- Second quarter revenue surged 14.4% year-on-year to 104.643 billion yuan, while net profit jumped to 2.155 billion yuan
- The company returned to profitability in Q2 after posting a 68.27 billion yuan loss in the first quarter, with adjusted profit of 2.524 billion yuan
- Core local business operating profit grew 52.3% year-on-year to 5.668 billion yuan, while new business losses narrowed by 7.6% to approximately 1.739 billion yuan
- Keeta, Meituan's international delivery platform, achieved stable profitability in Hong Kong and continued improving operational efficiency in the Middle East market
Why It Matters
The sharp contrast between Meituan's first-half loss and its strong Q2 recovery signals a pivotal shift in the competitive food delivery and local services landscape. As Meituan stabilizes its core domestic operations while expanding internationally through Keeta, investors will closely monitor whether the company can sustain its profitability momentum and successfully execute its overseas growth strategy in markets including Brazil .
The sharp contrast between Meituan's first-half loss and its strong Q2 recovery signals a pivotal shift in the competitive food delivery and local services landscape. As Meituan stabilizes its core domestic operations while expanding internationally through Keeta, investors will closely monitor whether the company can sustain its profitability momentum and successfully execute its overseas growth strategy in markets including Brazil .