Meituan Full Year 2023 Earnings: EPS Beats Expectations

Meituan (HKG:3690) Full Year 2023 Results

Key Financial Results

• Revenue: CN¥276.7b (up 26% from FY 2022).
• Net income: CN¥13.9b (up from CN¥6.69b loss in FY 2022).
• Profit margin: 5.0% (up from net loss in FY 2022).
• EPS: CN¥2.23 (up from CN¥1.09 loss in FY 2022).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Meituan EPS Beats Expectations

Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 6.6%.

The primary driver behind last 12 months revenue was the Core Local Commerce segment contributing a total revenue of CN¥206.9b (75% of total revenue). Notably, cost of sales worth CN¥179.6b amounted to 65% of total revenue thereby underscoring the impact on earnings. The largest operating expense was Sales & Marketing costs, amounting to CN¥58.6b (66% of total expenses). Over the last 12 months, the company's earnings were enhanced by non-operating gains of CN¥4.86b. Explore how 3690's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Hospitality industry in Hong Kong.

Performance of the Hong Kong Hospitality industry.

The company's shares are up 6.8% from a week ago.

Risk Analysis

You should always think about risks. Case in point, we've spotted 1 warning sign for Meituan you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.