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 surging by 102.8% year-on-year. The core business margin improved significantly, while losses in new businesses narrowed by 17.5%.
Meituan’s Q1 results surpassed expectations, with total revenue hitting RMB 86.6 billion, up 18.1% year-on-year, and operating profit soaring 102.8% year-on-year. Core business margins saw substantial improvement, and new business losses narrowed notably. Businesses like in-store dining and food delivery remained active, with strong performance in order volume, user retention, and repurchase rates. Instant retail services like “Meituan Instashopping” continued high growth, with order volumes rising significantly. On Monday, the 26th, Meituan released its 2025 Q1 financial report, showing Q1 revenue of RMB 86.56 billion, up 18.1% year-on-year (estimated at RMB 85.44 billion). Net profit was RMB 10.06 billion, up 87.3% year-on-year (estimated at RMB 8.63 billion). Adjusted EBITDA reached RMB 12.3 billion, up 52.4% year-on-year; adjusted net profit was RMB 10.9 billion, up 46.2% year-on-year. Operating profit surged 102. 8% to RMB 10.6 billion, with an operating 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). Sales expenses were RMB 15.55 billion (estimated at RMB 15.8 billion). R&D spending was RMB 5.77 billion (estimated at RMB 5.53 billion). The company’s cash and equivalents totaled RMB 115 billion, with short-term financial investments of RMB 65. 4 billion. In core businesses: Local commerce segment revenue reached RMB 64.3 billion, up 17.8% year-on-year, with operating margin rising to 21.0%. In-store dining and food delivery showed strong activity, with robust order volumes, user retention, and repurchase rates, supported by multiple product innovations. Instant retail services like “Meituan Instashopping” maintained high growth, with order volumes increasing significantly. New business segment revenue grew 19.2% year-on-year to RMB 22.2 billion, with operating losses narrowing to RMB 2.3 billion and the loss ratio dropping to 10.2%. Overseas operations (Keeta in Saudi Arabia) showed initial breakthroughs with positive feedback. Revenue growth and profit rebounded sharply, while new business losses continued to narrow. Meituan’s 2025 Q1 overall performance reflected “high growth + high profitability.” Revenue of RMB 86.6 billion set a new record, and the profit side, closely watched by the market, saw a full-scale breakout: the overall operating margin jumped from 7.1% to 12.2%, the operating margin for core businesses rose sharply from 17.8% to 21.0%, and operating profit grew 39.1% to RMB 13.5 billion. Net profit for the period increased by 87.3%.3%, with operating cash flow reaching RMB 10.1 billion. Order volume growth + structural optimization: The total number of orders for businesses such as food delivery, in-store, and instant retail continued to expand, with an increase in medium- and high-frequency users, driving synchronous growth in commission and delivery service revenue (up 22.0% and 22.1% YoY, respectively), effectively diluting basic costs such as delivery and customer acquisition.
Operational efficiency improvements: Due to reduced subsidies, more precise user incentives, and rationalized promotions and advertising, the local commerce segment demonstrated significant cost control results. Diverse innovative products launched: Initiatives such as brand satellite stores, transparent kitchens, and the expansion of instant retail effectively captured new consumer demand and expanded user repurchase opportunities. Core business: Profitability significantly enhanced. In Q1 2025, core local commerce revenue grew 17.8% YoY to RMB 64.3 billion, with operating profit up 39.1% to RMB 13.5 billion, and operating margin rising to 21.0%. Refined operational strategies improved user retention and purchase frequency, particularly among medium- and high-frequency users. Food delivery maintained healthy growth, with refined operations enhancing user retention and purchase frequency. Initiatives like “Pin Hao Fan” and “Shen Qiang Shou” catered to diverse consumer needs, while the innovative “Brand Satellite Store” helped chain restaurants reduce costs and expand. The “Transparent Kitchen” initiative improved food safety transparency, and Meituan announced a RMB 100 billion investment over the next three years to drive industry high-quality development. “Meituan Instant Retail” maintained strong growth momentum in Q1, with significant increases across multiple consumer categories, including beverages, snacks, 3C products, home appliances, and beauty/personal care. Orders on Valentine’s Day alone nearly doubled YoY. The “Meituan Lightning Warehouse” initiative progressed, and the instant retail brand was officially launched in April, offering 30-minute delivery for all goods. In-store services introduced measures like “Anxin Xue” and “Anxin Lian” to ensure safety, while collaborations with independent artisans enriched service offerings. The hotel and travel business upgraded benefits for “Meituan Members” to strengthen brand recognition. Post-organizational restructuring, Meituan deepened its industrial supply chain layout, expanded chronic disease drug supplies, and partnered with medical institutions for cross-selling. In March, Meituan launched a “Meituan Membership” program covering all businesses, featuring “Shen Quan” as a universal benefit with tiered privileges to boost transaction frequency and cross-selling efficiency. Meituan reported in its financial statements that since piloting the “New Occupational Injury” program in July 2022, it has paid RMB 1.5 billion in premiums for nearly 7 million riders across seven provinces, with nationwide rollout expected by the end of next year.In early April this year, Meituan launched a pension insurance subsidy plan tailored to delivery riders and initiated a pilot program. By early May, participating riders had received cash subsidies provided by Meituan.
New Business Segment: High Investment Yields Efficiency Turning Point, Losses Continue to Narrow. In the first quarter of 2025, Meituan’s new business segment achieved revenue of 22.2 billion yuan, a year-on-year increase of 19.2%. Operating losses narrowed to 2.3 billion yuan, down 17.5% year-on-year, with the loss ratio improving by 4.6 percentage points to 10.2%, indicating significant operational efficiency improvements. In the grocery retail and software/hardware services sectors, the company leveraged platforms like Xiaoxiang Supermarket and Meituan Youxuan to provide comprehensive support to foreign trade enterprises, including marketing, channel expansion, and brand collaboration, helping high-quality export products penetrate the domestic market. Keeta’s Expansion: Reshaping the Global Food Delivery Landscape. Faced with increasing competition from rivals like JD.com in the domestic market, Meituan shifted its strategic focus overseas. Over the past year, its Keeta app launched aggressive campaigns in regions such as Hong Kong and the Middle East, already reshaping local food delivery ecosystems. In Hong Kong, Keeta’s aggressive pricing strategy proved effective—Deliveroo Plc, which had operated for a decade, announced its exit this year, becoming the first ‘casualty’ of Keeta’s expansion. In Saudi Arabia, since entering the market in September 2024, Keeta has rapidly expanded across major cities. Citigroup predicts the app may rival or even surpass local second-place player Jahez later this year. Meituan’s global ambitions extend further. The company recently announced plans to invest $1 billion to introduce Keeta to the Brazilian market, underscoring its focus on Latin America. Risk Disclosure and Disclaimer: Market risks exist; invest with caution. This article does not constitute personal investment advice nor considers individual users’ specific investment objectives, financial situations, or needs. Users should evaluate whether any opinions, views, or conclusions herein align with their particular circumstances. Investments made accordingly are at the investor’s own risk.
