(Reuters)-Beijing-
Despite a return of COVID-19 incidents in China, Chinese food delivery operator Meituan reported a better-than-expected 16.4% increase in quarterly sales from a year ago on Friday.
According to Refinitiv Eikon data, revenue increased to 50.94 billion yuan ($7.42 billion) in the June quarter, above the 48.59 billion yuan projected on average by 14 analysts.
In March and April, China saw an increase in COVID cases, prompting lockdowns in numerous cities, including commercial center Shanghai, as part of the country’s goal to cut all transmission lines for the virus, unsettling supply chains, interrupting companies, and affecting consumer spending.
The limits have a significant impact on Meituan’s delivery services, forcing several suppliers to close.
While Meituan and other companies claim their operations began to recover in June when restrictions were lifted, the threat of COVID lockdowns remains as infections develop, especially in Sanya, a popular beach tourist area.
Meituan, whose services include hotel booking and bike-sharing, reported a 6.82 billion yuan loss for the quarter, down from 8.20 billion yuan a year earlier.
Core local commerce revenue increased 9.2% to 36.78 billion yuan, including food delivery and in-store, hotel, and travel sectors.
1 US dollar is equal to 6.8623 Chinese yuan renminbi.
