Food delivery giant Meituan (03690.HK) has finally served up an appetizing profit for investors after two lean years, but can it follow up with the next earnings course?

Despite tough Covid lockdowns and flagging consumer demand, Meituan posted better than expected earnings in the third quarter from both its core businesses, such as food delivery, and its newer commercial ventures. Cost controls paid off and revenues grew strongly, putting the company back in the black after seven quarters of losses.

The results posted last Friday showed total revenue grew just over 28% to 62.62 billion yuan ($8.89 billion) in the three months to end-September. For a clearer idea of the dynamics, it’s worth taking a closer look at Meituan’s two main divisions: the core local commerce business, which includes food delivery and shopping platforms, and its new ventures such as Meituan Select.