Chinese food delivery giant Meituan reported a revenue of 50.94 billion yuan in the second quarter of the year, rising 16.4% from 43.76 billion yuan a year earlier and beat market expectation of 48.59 billion yuan.
Net loss reached 1.12 billion yuan in the quarter, compared to a net loss of 3.36 billion yuan a year earlier and better than market expectation of a loss of 2.924 billion yuan.
Adjusted net profit reached 2.058 billion yuan, compared to an adjusted net loss of 2.217 billion yuan a year earlier and expected net loss of 2.17 billion yuan.
Sales from new initiatives, including its community e-commerce business Meituan Select, grew by 40.7% year on year to 14.16 billion yuan, partly driven by increased demand for Meituan Instashopping during the COVID resurgence.
Revenue from core local commerce, which includes food delivery and in-store, hotel and travel businesses, rose 9.2% to 36.78 billion yuan.
Meituan said the number of transacting users reached 684.7 million in the 12 months ended on June 30, rising 8.9% from 628.4 million in the previous year, and the number of active merchants on the platform stood at 9.2 million, surging 18.5% from a year earlier.
China experienced a surge in COVID cases in March and April that prompted lockdowns in several cities, including the commercial hub Shanghai, as part of the country’s policy to cut all transmission chains for the virus, roiling supply chains, disrupting businesses and hitting consumer spending. The curbs severely hit Meituan’s delivery services and forced many vendors to shut.