Chinese food delivery giant Meituan has reported better-than-expected earnings for the first three months of this year, posting a 25% revenue increase to RMB 73.3 billion ($10.1 billion). Its core local business generated RMB 54.6 billion fueled by strong takeaway orders. Net profit for the quarter rose to RMB 5.4 billion compared to RMB 3.4 billion a year prior, partly as the company’s new businesses narrowed losses by nearly half versus the same period last year. CEO Wang Xing attributed the first quarter’s earnings results to the firm’s reorganization that began early this year, which pushed for closer operating connections between food delivery and in-store services, a move that he said had increased “the platform’s overall efficiency.” On the related earnings call, Wang also told investors that Meituan is taking steps to research the possibility of entry into European and Southeast Asian markets, while continuing to evaluate the Middle East’s market potential in terms of food delivery. [Meituan]
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