The following is a summary of the Dingdong (Cayman) Limited (DDL) Q1 2024 Earnings Call Transcript:
Financial Performance:
Dingdong reported a Gross Merchandise Volume (GMV) of RMB 5.53 billion and a non-GAAP net profit of RMB 41.482 million in Q1 2024.
The company achieved revenue of RMB 5.02 billion marking a 0.5% year-over-year increase.
Non-GAAP net profit margin rose to 0.8%, increasing by 0.7 percentage points from the previous year.
The company demonstrated GAAP profitability, posting a net profit margin of 0.2%, up by 1.3 percentage points, with a net profit growth of RMB 64.666 million.
Dingdong has a self-owned fund balance of RMB 2.09 billion after deducting short-term borrowings at the end of Q1.
Business Progress:
Record growth in net profit margin and revenue are attributed to Dingdong's fresh grocery supply chain capabilities promoting domestic market expansion and potential overseas influence.
Their supply chain optimization has resulted in a decreased end-to-end loss rate of 1.5% and an increased gross profit margin.
In Q1, Dingdong expanded and increased the density of their frontline fulfillment stations in key regions including Shanghai, Zhejiang, and Jiangsu.
The digital supply chain contributes to supporting various industry growth, adding to the potential for profit.
The company expects sustained performance improvement throughout 2024, with net profit and scale likely observing significant growth.
Dingdong has optimized the credit period, leading to an acceleration in account payable turnover days and resulting in an increase in own funds by RMB190 million from the end of the last quarter.
This financial health will assist in growth throughout the year, providing more funds for capital expenditure to build new stations in Shanghai, Zhejiang, and Jiangsu regions.
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