Original title: Meituan Dianping executives interpret Q2 financial report: Takeaway rider cost reduction promotes profit growth Source: Sina Technology
Meituan Dianping released its 2020 No. Second quarter earnings report. According to the financial report, Meituan Dianping’s revenue in the second quarter was 24.72 billion yuan, an increase of 8.9% year-on-year. Under the non-IFRS measurement, the adjusted net profit was 2.718 billion yuan, a year-on-year increase of 82%.
After the financial report was released, Meituan Dianping CEO Wang Xing and CFO Chen Shaohui participated in the analyst conference call to interpret the financial report.
The following is the main content of the Q&A session of the conference call:
Goldman Sachs analyst Ronald Keung: Thank you management . Excellent results and strong takeaway profitability, especially considering that we are in the recovery phase of the epidemic in the second quarter. Then I would like to ask, how much of the reduction in the cost of takeaway riders accounts for this? In the future, what will be the trend of the cost of takeaway riders?
Wang Xing: Thank you, Ronald. You are right, the reduction in the cost of takeaway riders is indeed an important factor in promoting our operating profit growth in the second quarter. There are several reasons. First of all, catering takeaways have obvious seasonality. The cost per delivery in the second quarter was the lowest compared to other quarters. This year, the weather conditions in the second quarter were also more favorable for us, so our allowance for riders who work in extreme weather conditions will be relatively small. Second, this year, our distribution network has also been further strengthened. In particular, we have further optimized the order distribution process, allowing riders to move more flexibly between regions. This means we can distribute orders across a larger area, creating more economies of scale. Of course, this also contributed to the overall efficiency in the second quarter. Third, due to the negative impact of the epidemic on the labor market, the number of foreign media riders was abundant in the second quarter, which also saved us a lot of money. Supply and demand dynamics are ideal.
These positive factors help us offset the increased costs due to the environment and temporary government tax exemptions. Therefore, our delivery cost per order decreased slightly year-on-year. Also, as I think you know, our focus is more on long-term growth. But I'll go ahead and explain what happens after that. Therefore, in the second half of this year, the seasonal trend of delivery cost per order is similar to that of previous years. Our efficiency improvements will help us offset the additional costs caused by the pandemic. From a long-term perspective, our food delivery business will continue to improve operational capabilities and optimize our order distribution system. We believe that there is still room for improvement in our distribution efficiency. As for the reduction in cost per delivery, I'm not sure if it's significant, but there is still room for reduction.
In addition, we have been developing automated delivery technology over the years. Once the application is successful, I believe this can significantly improve our delivery efficiency and reduce the cost per delivery. We have been doing research on this. That day will surely come, but we still need to be patient. But in the coming quarters, in the next few years, I think we have the ability to continue to reduce the cost of delivery through optimized order allocation algorithms or eventually automation technology. So, let's wait patiently for this day to come.Massive information, accurate interpretation, all in Sina Finance APP