On November 30, it was reported that Meituan Company had recently released its financial report for the third quarter of 2023. In this quarter, Meituan Company's revenue reached 76.5 billion yuan, up 22.1% year on year; Adjusted EBITDA and adjusted net profit increased by 28.9% and 62.4% year on year respectively to 6.2 billion yuan and 5.7 billion yuan, and both revenue and adjusted net profit achieved strong double-digit growth.
In the third quarter, benefiting from the recovery of consumption, Meituan's core local business segment, including catering takeout, Meituan flash purchase and in store hotel travel business, achieved a quarterly revenue of 57.7 billion yuan, up 24.5% year on year; The revenue of Meituan's new business segment (including Meituan Optimality, Meituan Buying Vegetables, etc.) increased to 18.8 billion yuan year on year.
It is worth noting that by the end of the third quarter, Meituan's annual number of active trading users, annual number of active merchants and user purchase frequency had all reached a record high.
Year on year growth of 24.5%, core local business stable
According to the financial report data, Meituan's core local business continued to maintain a steady growth in the third quarter, whether in the home business or in the store business.
In the third quarter, benefiting from the recovery of consumption, Meituan's core local business segments (including catering takeout, Meituan flash purchase and in store hotel travel business) achieved quarterly revenue of 57.7 billion yuan, up 24.5% year on year, operating profit increased 8.3% year on year to 10.1 billion yuan, and operating profit margin was 17.5%. Each business of the division has achieved steady growth.
Specifically, in the third quarter, Meituan's total orders for instant delivery reached 6.2 billion, up 23% year on year. Among them, the daily order peak of catering delivery exceeded 78 million in this quarter, a record high and double that of three years ago; The peak daily orders of Meituan flash purchase exceeded 13 million, maintaining a strong growth momentum.
On the merchant side, Meituan flash purchase cooperated with nearly 400 brands, and the number of active merchants in the third quarter increased by 30% year on year. At the same time, the number of "Meituan flash stores" has exceeded 5000, which has guaranteed and promoted the growth of Meituan flash purchase business.
In the third quarter, the transaction volume of Meituan's in store, hotel and tourism business increased by more than 90% year on year, the number of quarterly active merchants increased by more than 50% year on year, and the number of quarterly transaction users also increased significantly. The monthly GTV of in store business hit a new high in August. The transaction amount and room night volume of hotel and tourism business increased significantly compared with the same period of 2022 and 2019.
As for the steady performance of Meituan's core local business in the third quarter, Wang Xing, CEO of Meituan, talked about the fruitful measures taken by the company in the financial report conference call, including:
Throughout the third quarter, Meituan continued to iterate and improve the live broadcast and special price group buying activities, and launched the "must eat festival" for the first time to provide consumers with cost-effective products and attractive content. Based on the insight of users' consumption habits, LBS features and the improvement of product capabilities, live broadcast can effectively attract consumers with clear consumption needs nearby.
Meituan also seized the opportunity of the Mid Autumn Festival and the National Day holiday peak season to optimize the official live broadcast of Meituan and display the characteristic activities of Meituan International Fair and Wedding Fair. Meituan's official live broadcast has now covered more than 200 cities. The number of live broadcasts has increased tenfold month on month, and GTV's contribution has increased significantly.
In terms of hotel and tourism business, Meituan has grasped the summer peak season, followed the consumption trend, continuously expanded high-quality supply, improved price competitiveness, and effectively met the increasingly diversified needs of consumers.. For example, in terms of wine travel, we have further enriched the "live+X" package products, and enhanced consumer awareness through promotions, marketing activities and live broadcast activities.
Service Retail Demand Boosts Technology Helps Improve Service Level
From the perspective of the overall environment, behind the steady growth of Meituan's core local business, there is also a strong support for the sharp increase of service retail demand.
"In the first three quarters, the retail sales of China's service industry grew 18.9% year on year, much higher than the total retail sales of consumer goods. This shows that the demand for service retail is still strong," said Chen Shaohui, CFO of Meituan.
Meituan can be said to be the earliest participant in the domestic service retail industry. The local life of Meituan is highly overlapped with service retail. It started from group buying, and then gradually expanded to store business groups, with its carrier to further expand the reach of service retail.
Analysts believe that Meituan has gained more experience in the process of expanding its service scope. Therefore, Meituan has formed a unique advantage in guaranteeing service experience and helping merchants to obtain certain business results, i.e. high write off rate.
In fact, the service retail field often needs to connect online and offline, but also has pain points and difficulties such as low industry concentration, decentralized merchants, and low digitalization.
As a platform of "retail+technology", Meituan has been working in the field of service retail for more than 10 years. Technology has been widely used in helping the digital transformation of the service retail industry and improving the competitiveness of service retail.
Chen Shaohui said on the financial report conference call that in the current environment, more and more consumers prefer the choice of value for money. They are more sensitive to price and usually compare prices from different channels before making a purchase decision. Meituan's "looking for stores and discounts" on the platform has received strong attention from consumers. At the same time, Meituan also has a strong professional accumulation in the pricing of packaged transactions and LBS algorithms, which can help businesses design popular packaged transactions that meet consumer needs and encourage more consumers to complete transactions online.
The local service industry is closely connected with consumers' "eating, drinking and having fun", and users' consumption is characterized by high frequency, rigid demand and anti cycle. In the third quarter, Meituan gave full play to the supply advantage accumulated over the years in the local service field. In the aspects of store arrival, hotel, tourism and other businesses, Meituan worked with various offline local entities to meet the ever-changing consumer demand. By providing better goods and services, Meituan constantly improved the consumer experience and further helped the overall growth of service retail scale.
At the same time, Chen Shaohui also stressed: "The online penetration rate of service retail is far behind that of commodity retail, so we believe there is still a lot of room for growth. In addition, consumer demand for service retail is becoming more diversified. We believe that our arrival, hotel and tourism will continue to benefit from this process."
Author: TechWeb
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