Meituan's Q1 revenue grew by 18.1% year-on-year, with strong performances in core and new businesses, and robust growth in flash sales | Financial Report Insights

Meituan's Q1 performance exceeded expectations, with total revenue reaching RMB 86.6 billion, a year-on-year increase of 18.1%, and operating profit soaring by 102.8% year-on-year. The profit margin of core business significantly improved, and losses in new businesses narrowed considerably.

On Monday, the 26th, Meituan announced its Q1 2025 financial report showing:

• Meituan's first-quarter revenue was RMB 86.56 billion, a year-on-year increase of 18.1%, estimated at RMB 85.44 billion.
• Net profit was RMB 10.06 billion, a year-on-year increase of 87.3%, estimated at RMB 8.63 billion.
• Adjusted EBITDA reached RMB 12.3 billion, a year-on-year increase of 52.4%; adjusted net profit was RMB 10.9 billion, a year-on-year increase of 46.2%.
• Operating profit surged by 102.8% to RMB 10.6 billion, with an operating profit margin of 12.2% (compared to 7.1% in the same period last year).
• Gross profit was RMB 32.41 billion, estimated at RMB 32.16 billion.
• Selling expenses were RMB 15.55 billion, estimated at RMB 15.8 billion.
• R&D expenses were RMB 5.77 billion, estimated at RMB 5.53 billion.
• The company's cash and cash equivalents amounted to RMB 115 billion, with short-term financial investments of RMB 65.4 billion.

In terms of core business:

• The local commerce segment's revenue reached RMB 64.3 billion, a year-on-year increase of 17.8%, with an operating profit margin rising to 21.0%;
• Businesses such as in-store dining and food delivery remained active, with strong performance in order volume, user stickiness, and repurchase rates, alongside multiple product innovations;
• Instant retail businesses like "Meituan Flash Purchase" continued to grow rapidly, with a significant increase in order volume;
• The new business segment's revenue grew by 19.2% year-on-year to RMB 22.2 billion, with operating losses narrowing to RMB 2.3 billion, and the loss rate decreasing to 10.2%.
• Overseas business (Keeta in Saudi Arabia) showed preliminary breakthroughs, with positive feedback.

Revenue Growth + Significant Profit Surge, Continuous Narrowing of New Business Losses

Meituan's overall performance in Q1 2025 was characterized by "high growth + high profitability." Revenue of RMB 86.6 billion set a historical record, and the profit side that the market focused on exploded comprehensively: the overall operating profit margin jumped from 7.1% to 12.2%, and the operating profit margin rose significantly from 17.8% to 21.0%, with operating profit increasing by 39.1% to RMB 13.5 billion. During the period, net profit grew by 87.3%, and operating cash flow reached RMB 10.1 billion.

• Order volume growth + structural optimization: The total number of orders for delivery, in-store, and flash purchase businesses continued to increase, with a rise in mid-to-high frequency users, driving simultaneous growth in commission and delivery service revenue (up 22.0% and 22.1% year-on-year, respectively), effectively diluting basic costs such as delivery/acquisition
• Improvement in operational efficiency: Due to reduced subsidies, more precise user incentives, and rational promotion and advertising spending, the cost control effectiveness of the local business division is evident.
• Diverse innovative products launched: Such as brand satellite stores, transparent kitchens, and the expansion of flash purchase services, effectively capturing new consumer demands and opening up repurchase space for users.

Core Business: Significant Enhancement in Profitability

Through refined operational strategies, user stickiness and purchase frequency have increased, especially among medium to high-frequency users. On the supply side, the iterations of "Pin Hao Fan" and "Shen Qiang Shou" continue to meet consumer demands for high cost-performance products across different price ranges.

Meituan stated in its financial report that since the pilot of "New Occupational Injury" in July 2022, it has paid 1.5 billion yuan in premiums for nearly 7 million riders across 7 provinces and cities, with plans to expand nationwide by the end of next year. In early April this year, Meituan launched a pension insurance subsidy plan more suited to rider characteristics and began a pilot program. By early May, riders participating in the pilot had received cash subsidies provided by Meituan.

Meituan's flash purchase service maintains strong growth momentum, with significant growth in multiple consumer categories, and order volume on Valentine's Day nearly doubled year-on-year. The construction of "Meituan Lightning Warehouse" is being promoted, with both the number and order proportion continuing to rise.

New Business Track: High Investment Yields Efficiency Turning Point, Losses Continue to Narrow

Revenue from the new business segment grew by 19.2% year-on-year, with losses narrowing by 17.5% year-on-year, and the loss rate has dropped to 10.2%. The impressive performance of grocery retail (Xiao Xiang Supermarket, Meituan Preferred) and overseas takeaway business indicates that Meituan's exploration beyond local life services is beginning to show results.

• Instant retail (Meituan Flash Purchase) has entered an explosive growth phase, with rapid volume increases in orders for large items and non-food categories, and a noticeable optimization in order structure.
• The overseas market (Keeta in Saudi Arabia) has initially received positive feedback from both users and merchants, indicating that Meituan has the foundation for technology and operational replication in the global takeaway sector, with the potential to grow into a "global new platform giant."

However, it is worth noting that the investment cycle and return rhythm of new businesses and overseas expansion still need to be continuously tracked. Although losses under the initial high investment have significantly narrowed, the gross margin pressure brought by business expansion and long-term sustainability require ongoing data verification