Meituan (HKSE:03690) Gross Margin % : 33.91% (As of Dec. 2023)

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What is Meituan Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Meituan's Gross Profit for the three months ended in Dec. 2023 was HK$27,337 Mil. Meituan's Revenue for the three months ended in Dec. 2023 was HK$80,607 Mil. Therefore, Meituan's Gross Margin % for the quarter that ended in Dec. 2023 was 33.91%.

The historical rank and industry rank for Meituan's Gross Margin % or its related term are showing as below:

HKSE:03690' s Gross Margin % Range Over the Past 10 Years
Min: 23.16 Med: 33.14 Max: 69.16
Current: 35.11

During the past 9 years, the highest Gross Margin % of Meituan was 69.16%. The lowest was 23.16%. And the median was 33.14%.

HKSE:03690's Gross Margin % is ranked worse than
52.56% of 1094 companies
in the Retail - Cyclical industry
Industry Median: 36.63 vs HKSE:03690: 35.11

Meituan had a gross margin of 33.91% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Meituan was 4.00% per year.

Meituan Gross Margin % Historical Data

The historical data trend for Meituan's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Meituan Gross Margin % Chart

Meituan Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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33.14

29.66

23.71

28.08

35.12

Meituan Quarterly Data
	Apr18	Dec18	Jun19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															28.16	33.81	37.37	35.29	33.91

Competitive Comparison of Meituan's Gross Margin %

For the Internet Retail subindustry, Meituan's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Meituan's Gross Margin % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Meituan's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Meituan's Gross Margin % falls into.

Meituan Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Meituan's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	106305.6	/	302697.787
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(302697.787 - 196392.147)	/	302697.787
	=	35.12 %

Meituan's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	27337.2	/	80607.075
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(80607.075 - 53269.889)	/	80607.075
	=	33.91 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Meituan (HKSE:03690) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Meituan had a gross margin of 33.91% for the quarter that ended in Dec. 2023 => Competition eroding margins

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Meituan Gross Margin % Related Terms

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Meituan (HKSE:03690) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Meituan (HKSE:03690) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

MPNGY:USA MPNGF:USA 9MD:Germany

Address

No. 4 Wang Jing East Road, Block B and C, Hengjiweiye Building, Chaoyang District, Beijing, CHN, 100102

Website

https://about.meituan.com

Meituan is the largest food delivery service in China, with a 70.7% share of the market in 2020 per the Chinese government. For the quarter-ended Sept. 30, 2021, the firm generated 54.2% of revenue from food delivery services, 17.7% from hotel booking, coupon sales, advertising, and 28.1% from new initiatives. In the long term, its new initiatives business may transform the company into an all-encompassing grocer and logistics business involving community group buying, nonfood delivery, and online grocery, overtaking food delivery as its main business.

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