Meituan (3690) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue increased 21% year-over-year to RMB 82.3 billion, with both core local commerce and new initiatives segments contributing to growth.

• Adjusted net profit rose 77.6% to RMB 13.6 billion, and operating profit surged 138.8% to RMB 11.3 billion, with a margin of 16.5%.

• Annual transacting users and active merchants reached record highs at 753 million and 30 million, respectively.

• On-demand delivery transactions grew 14.2% year-over-year to 6.17 billion in Q2 2024.

• Net operating cash inflow reached RMB 19.1 billion, with cash and equivalents at RMB 54.7 billion and short-term treasury investments at RMB 78.5 billion as of June 30, 2024.

Financial highlights

• Q2 2024 profit for the period was RMB 11.4 billion (13.8% margin); adjusted EBITDA nearly doubled to RMB 15.0 billion.

• Six-month revenues increased 22.9% year-over-year to RMB 155.5 billion, with operating profit up 98.4% to RMB 16.5 billion.

• Basic EPS for H1 2024 was RMB 2.70, up from RMB 1.30 a year earlier.

• Cost of revenues as a percentage of revenues decreased to 58.8% in Q2 2024 from 62.6% a year ago.

• Cash from operating activities rose to RMB 19.1 billion year-over-year.

Outlook and guidance

• Management expects continued strong growth in on-demand delivery and in-store business, with operating profit growth outpacing revenue and order volume.

• Monetization rate is expected to normalize, and the gap between revenue and GTV growth will narrow in the second half of 2024.

• Focus remains on quality growth, operational efficiency, and leveraging synergies from organizational restructuring.

• Management remains confident in navigating market cycles and facilitating digital transformation in local commerce.

• Plans to deepen supply chain penetration, expand value-for-money offerings, and drive high-quality development in China’s local commerce sector.