Food delivery giant Meituan sliding nearly 6% after it warned of headwinds ahead

 

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Chinese food delivery giant Meituan slid 5.6% to close at HK$132.2 in Hong Kong.

The company swung to profit in the second quarter of the year, but executives warned of headwinds for its core business in the quarter ahead.

Meituan reported a revenue of 67.9 billion yuan for the quarter ended June 30, rising by 33.4% from 50.9 billion a year earlier, beating expectation of 66.7 billion yuan. 

Net profit reached 4.7 billion yuan, compared to a loss of 1.1 billion yuan a year earlier, when China was under COVID-19 containment measures.

CEO Wang Xing warned that the third quarter would likely be tougher for the food delivery business as macroeconomic headwinds and extreme weather events, including record-breaking rainfall in regions such as Beijing, prove challenging in the short term. Read more …