Meituan (MPNGF) Q1 2023 Earnings Call Transcript

For the period ending March 31, 2023

May 25, 2023 7:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Thank you for standing by, and welcome to the Meituan First Quarter 2023 Earnings Conference Call. All participants will be in a listen-only mode. There will be a presentation followed by a question-and-answer session. [Operator Instructions]

I would now like to hand the conference over to Scarlett Xu, VP and Head of Capital Markets.

Scarlett Xu

Thank you, Operator. Good evening, and good morning, everyone. Welcome to our first quarter 2023 earnings call. Joining us today are Mr. Xing Wang, Chairman and CEO; and Mr. Shaohui Chen, Senior Vice President and CFO of Meituan. For today's call, management will first provide a review of our first quarter 2023 results, and then conduct a Q&A session.

Before we start, we would like to remind you that our presentation contains forward-looking statements, which include a number of risks and uncertainties and may differ from actual results in the future. This presentation also contains unaudited non-IFRS financial measures that should be considered in addition to, and not as a substitute for, measures of the company's financial performance prepared in accordance with IFRS. For a detailed discussion of risk factors and non-IFRS measures, please refer to the disclosure documents in the IR section of our Web site.

Now I will turn the call over to Mr. Xing Wang. Please go ahead, Xing.

Xing Wang

Thank you, Scarlett, and good evening to everyone. Since the beginning of 2023, China had experienced gradual consumption recovery. We are glad to see that the recovery of local servicing has been outpacing many other sectors, particularly, [indiscernible] retail technology platform that's deeply rooted in the on-demand retail and local services. Meituan has captured consumer's diverse demand for goods and services during the consumption recovery, with the various businesses posting healthy growth.

For the first quarter of 2023, our total revenues increased by 26.7% year-over-year to RMB58.6 billion, and adjusted EBITDA is RMB6.3 billion, and adjusted net profit RMB5.5 billion, and especially on-demand delivery has become increasingly popular among consumers, covering not only restaurant foods, also broader retail categories.

We have continued to expand our categories and selections to deliver almost everything to the consumer's doorsteps. Moreover, we have explored and developed diversified operating solutions and marketing tools that allow millions of merchants in local services to see the post-pandemic recovery opportunities, increase their revenue, and improve their operating efficiency. We are firmly committed to creating more value for all the participants in our ecosystem, and we will continue to fulfill our mission to help people eat better, live better.