Dingdong Maicai’s fourth quarter revenue grew 72% YoY in 2021 – Pandaily
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On Tuesday, China’s fresh produce logistics and delivery company Dingdong Maicai published its results for the fourth quarter ended December 31, 2021. The published data indicates a 72% year-over-year increase to $5.48 billion in revenue for the fourth quarter. Total 2021 revenue was $20.12 billion, up 77.5% year-over-year.
In the fourth quarter, Dingdong Maicai recorded a net loss of 1.096 billion yuan ($173 million), while in the fourth quarter of 2020 it was 1.246 billion yuan. Calculated under GAAP, the net loss was about 1.034 billion yuan, while in 2020 it was 1.239 billion yuan. Both developments indicate a reduction in losses.
In addition, the company announced that it made a profit in December in Shanghai and oversaw a positive UEM (unit economic model) in the fourth quarter in the Yangtze River Delta region.
In response to the fourth quarter results, Liang Changlin, Founder and CEO of Dingdong Maicai, said the company had the best fourth quarter performance since its inception and will drive growth mainly through consumption upgrades. and commodity energy.
Financial results indicate a gross margin of 27.7% in the fourth quarter of last year, up 9.5% sequentially from the third quarter. The increase in gross margin is attributable to the increase in merchandising power. Dingdong Maicai said in its earnings report that its scale advantage and production and processing capabilities contributed to the profit margin on the production side. In addition, it continues to optimize the category structure of its merchandise, which gradually increases the GMV share of high-quality merchandise.
In terms of commodity data, the financial report shows that Dingdong Maicai now has more than 20 OBMs and will further increase investment in research and development, especially in infrastructure construction, supply chain systems. supply, agricultural technology and food R&D.
As of the fourth quarter of 2021, Dingdong Maicai had 10 R&D and food processing factories, about 60 sorting centers and about 1,400 front warehouses with an area of 500,000 square meters. In addition, it plans to build three large-scale and modern fresh produce preservation complexes this year, to ensure more efficient development, production and transportation of commodities.
Yu Le, chief strategy officer of Dingdong Maicai, said in a conference call that the biggest hurdle for 3R dishes is the sales channel, while it is Dingdong’s most important core competitiveness. Mayai. In the fourth quarter of 2021, its GMV exceeded 900 million yuan.
SEE ALSO: Dingdong Maicai releases annual consumption report: 3R sales volume increased by 300%
Liang Changlin also debunked rumors during a conference call that the company laid off 10,000 employees, adding that Shanghai labor inspection authorities conducted an on-the-spot investigation and found no changes. major in the flow of company employees compared to previous years.