Meituan's operating profit dips 34.5% despite revenue growth

Meituan announced its interim results for the six months ended June 30, 2025, with revenues rising 14.7% year-over-year to RMB178.4 bn from RMB155.5 bn in the same period of 2024. Despite this top-line growth, operating profit saw a substantial decrease of 34.5%, falling to RMB10.8 bn from RMB16.5 bn. Profit for the period also declined by 37.7% to RMB10.4 bn.

The core local commerce segment's operating profit decreased by 75.6% year-over-year to RMB3.7 bn for the second quarter of 2025, with the operating margin shrinking to 5.7% from 25.1%. This was primarily attributed to intensified competition, leading to increased incentives and marketing expenses. Conversely, the "New Initiatives" segment saw revenues increase by 22.8% to RMB26.5 bn for Q2 2025, though its operating loss widened by 43.1% to RMB1.9 bn, largely due to overseas business expansion.

Total cash and cash equivalents stood at RMB101.7 bn as of June 30, 2025. The company repurchased 3,018,700 Class B Shares for an aggregate consideration of HK$391.8m during the six-month period.