Meituan Announces Financial Results for the Year Ended December 31, 2023
- Meituan's revenues increased by 25.8% to RMB276.7 billion in 2023, with an operating profit of RMB38.7 billion in the Core local commerce segment, and a profit of RMB13.9 billion for the year.
- Adjusted EBITDA and adjusted net profit rose to RMB23.9 billion and RMB23.3 billion, respectively, in 2023.
- Meituan's business highlights include strong growth in the Core local commerce segment and Instashopping, with significant improvements in operational efficiency and supply chain optimization.
- The New initiatives segment saw revenue growth of 18.0% to RMB69.8 billion in 2023, with operational loss narrowing to RMB20.2 billion.
- Meituan plans strategic changes for Meituan Select in 2024 to reduce operating losses and focus on long-term growth.
- The company aims to continue digital transformation, enhance product offerings, and benefit all ecosystem participants in 2024.
- None.
Company Financial Highlights
For the full year of 2023, our revenues increased by
"During 2023,
Meituan CFO Shaohui Chen said, "In 2023, thanks to the growth of service consumption in
Company Business Highlights
Core local commerce
For the full year of 2023, revenue for the Core local commerce segment increased by
For the fourth quarter of 2023, segment revenue increased by
2023 marks the 10-year anniversary of our food delivery business. After continuous innovation and growth over the past decade, our food delivery business further solidified its market leadership and core competence in 2023. Annual Transacting Users of food delivery continued to grow, and mid-to high-frequency users, and their purchase frequency increased steadily. Having food and meals delivered in 30 minutes has become a new lifestyle. It now covers broader consumption categories and caters to a much larger consumer base. As consumer preference evolved throughout 2023, we proactively iterated our business strategies and refined our operations in products, marketing and supply. We expanded the scale of Pin Hao Fan to better satisfy consumer demand in value-for-money selections. Additionally, we refined our operations in high order value products, such as Shen Qiang Shou, Meal For One and Must-Order List. During the process, we enhanced two key competences. The first one is product display. We enhanced our content production capabilities across various formats, including graphics, texts, videos and live streaming, to nurture a vibrant content ecosystem. The other one is promotional schemes. We upgraded and simplified our membership program to make it easier to use by consumers and merchants alike. Our continuous improvement in the shelf-based model, combined with our enhanced marketing ability to sell mega-hit products, allows us to stimulate consumer demand more effectively.
Meituan Instashopping posted another stellar growth with order volume increasing by over
As we proactively captured the offline consumption rebound, GTV of our in-store, hotel and travel businesses increased by over
In 2023, we continued to iterate business operations and drive industry transformation. During the year, we enhanced our ability in promoting value-for-money mega-hit products and enriched our video content offerings. Through the Special Deals sessions, we collaborated with high-quality merchants to offer a diverse selection of discounted deals and improved our traffic allocation efficiency. As a result, order volume from Special Deals increased rapidly. We also introduced a combination of live streaming programs, which includes Meituan platform live streaming, merchant live streaming and sales team live streaming. We can thereby provide vivid recommendations for consumers and satisfy their stockpiling needs. Throughout 2023, the transaction scale from live streaming increased rapidly. Consumers have become more willing to watch live streaming and place orders on our platform. Both Special Deals sessions and live streaming events helped us to further solidify our consumer mindshare of "Everyday Low Price".
Amidst the changing industry landscape, we continued to optimize our shelf-based search model in order to strengthen our competitive advantage. During 2023, by offering merchant incentives and joint-marketing programs, we not only deepened collaborations with high-quality merchants, but also provided consumers with value-for-money deals. We also lowered the threshold for subscription-based services, thus accelerating merchant onboarding and significantly expanding our merchant base. We provided comprehensive solutions and marketing tools for the newly opened merchants to support their business growth. As a trustworthy platform in local services, we helped merchants accumulate valuable digital assets like user reviews and transaction data to further improve their operations, while helping consumers make consumption decisions more easily. We further optimized our theme-based marketing events and organized more diversified online and offline promotions for our trusted "Must-Eat List", "Must-Eat Festival", and "Black Pearl List", which helped these high-quality merchants further enhance brand awareness and transaction conversions. In addition, we implemented direct operations nationwide to replace the former agency model, so that we can seize more growth opportunities in the lower-tier markets. Throughout the year, we also launched a series of measures to better meet consumer needs and incentivize consumption, such as offering add-on selections for combo meals, and providing delivery service options.
For hotel and travel businesses, we effectively captured the strong industry rebound, by leveraging our expertise in leisure travel and our competitive advantage in the domestic market. Our domestic hotel GTV increased by over
New Initiatives
In 2023, revenues from the New initiatives segment increased by
For the fourth quarter of 2023, revenues from the New initiatives segment increased by
Growth of Meituan Select slowed down in 2023, as the market size of community e-commerce was relatively flat on year-over-year basis. Despite the year-over-year efficiency improvement, Meituan Select still made significant loss with high operating loss ratio during 2023 mainly due to: 1) scale growth was slower than expected which made it difficult to meaningfully lower fulfillment cost per item; and 2) fierce competition which made it difficult to improve price mark-up ratio and lower subsidies. While Meituan Select is still part of our online grocery strategy, we admitted this market was much tougher than we originally expected. We will make strategic changes and refine the business model in 2024, aiming to significantly reduce the operating loss. We will prioritize on building key competences and improving user experience, rather than focusing on market share. We plan to increase the price mark-up ratio and reduce subsidies in the future, paying more attention to the long-term growth of natural retention rate.
In December 2023, we upgraded the former Meituan Grocery to a new brand – Xiaoxiang Supermarket, which marks the official transition from grocery to online supermarket. During 2023, GTV from Xiaoxiang Supermarket increased by around
Company Outlook and Strategy for 2024
Facing the new macro environment and competitive landscape, we proactively responded to the changes and iterated our business operations in 2023. We are convinced that the domestic consumption market has immense potential, and we are well-positioned to seize growth opportunities. As we venture into 2024, we will continue to enrich our product and service matrix that caters to a broader consumer base and merchant base. We will deep-dive into the intricacies of the on-demand delivery industry, as we firmly believe that having everything delivered to the consumers' doorsteps within 30 minutes will be the next era. In addition, with the continuous emergence of new consumption trends, digital transformation of the local service industry is inevitable, and there is tremendous room for its online penetration. As an industry leader, we will leverage our know-hows, solidify our core competencies, and continue to enhance our capabilities, to facilitate the digital transformation process. Moreover, we will make our utmost effort to benefit all the participants in our ecosystem, create more job opportunities and realize greater social value. We are firmly committed to implementing our "Retail + Technology" corporate strategy and fulfilling our mission that "We help people eat better, live better".
For the full announcement of Meituan for the year ended December 31, 2023, please visit: https://media-meituan.todayir.com/20240322164002157811109781_en.pdf
About Meituan
Meituan (HKG: 3690) (the "Company") is a leading technology-driven retail company in
Forward-Looking Statements
This press release contains forward-looking statements relating to the business outlook, forecast business plans and growth strategies of the Company. These forward-looking statements are based on information currently available to the Company and are stated herein on the basis of the outlook at the time of this press release. They are based on certain expectations, assumptions and premises, some of which are subjective or beyond our control. These forward-looking statements may prove to be incorrect and may not be realized in future. Underlying the forward-looking statements is a large number of risks and uncertainties. Further information regarding these risks and uncertainties is included in our other public disclosure documents on our corporate website.
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