Chinese food delivery titan Meituan reported a better-than-expected 16% increase in quarterly revenue, after appetite for meal takeaway remained largely intact despite an economic downturn and COVID-related disruptions, reports the South China Morning Post.
Sales rose to RMB 50.9 billion ($7.4 billion) during the three months ended June, versus an average projection for RMB 48.6 billion. It logged a net loss of RMB 1.12 billion, the seventh consecutive quarter in the red, but better than estimated as cost cuts kicked in.
Meituan is one of the few Chinese internet companies that managed to expand at a double-digit pace despite macroeconomic headwinds. The economic fallout from COVID-induced lockdowns in cities like Shanghai dealt a serious blow to larger firms including Alibaba Group Holding and Tencent Holdings, both of which reported their first-ever sales contractions since going public nearly a decade ago.
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