Meituan’s profitability improves, revenues drive forward

Here are three key takeaways from the fourth quarter 2023 results of Chinese food delivery platform Meituan:

1. Healthy revenue growth

The company recorded 2023 revenues of 277 billion yuan (US$38 billion), up by 25.8% compared to the previous year. For the fourth quarter, revenue grew 22.6% year on year to US$10 billion.

These figures were driven by a 23.9% year-on-year increase in total on-demand delivery transactions, which hit nearly 22 billion.

2. Improved operating profit

Meituan’s operating profit improved significantly for 2023, reaching US$1.9 billion. This recovered from a loss of about US$805 million in 2022.

The improvement was due to cost of revenues, research and development, and general and administrative expenses declining as a percentage of revenue, although this was partially offset by a proportional increase in selling and marketing expenses.

3. Strong cash position

The company had a strong cash position at the end of 2023, with cash and cash equivalents of US$4.6 billion and short-term treasury investments of US$15.5 billion. This indicates Meituan’s sufficient liquidity to support its operations and invest in future growth opportunities.

Currency converted from Chinese yuan to US dollar: US$1 = 7.23 yuan.