Missfresh Limited (MF) stock soars up to $4.80 with an increase of 15.66% versus its close at $4.15 (-1.19%) on November 11. Missfresh, an innovator and leader in China’s neighborhood retail industry, announced its unaudited Q3 financial results on November 11, 2021. The positive financial results put the stock on an uptrend in pre-market at a volume of 344K.
After MF’s product expansion announcement on November 9, the stock saw an uptrend which didn’t last long. The investors were not thoroughly impressed with the product expansion, causing the stock to tumble down the next day. The downtrend now seems to have been broken by the Q3 financial results, putting the stock in good favour with the investors.
Missfresh Limited (MF) provides fresh produce along with fast-moving consumer goods to customers. MF provides the products through its online e-commerce platform as well as distributed mini-warehouse (DMW) networks.
Financials – MF Stock
According to the results for the quarter ended September 30, 2021, the total revenues were RMB2,121.9 million ($329.3 million). This total revenue showed a positive change of 47.2% from RMB1,441.2 million for the same quarter in 2020. The revenue for Q3 also exceeded the company’s guidance range.
As per the Q3 results, the Non-GAAP basic and diluted net loss per American depository shares (ADS) of MF was RMB13.86 ($0.60). While the non-GAAP basic and diluted net loss per ADS was RMB13.86 for the same quarter in 2020.
Moreover, the gross margin increased by 480 basis points from 7.5% in the second quarter of 2021, to 12.3% for the third quarter.
Q4 Guidance – MF Stock
Given the positive Q3 results, MF expects the net revenue for its fourth quarter of 2021 to fall between RMB2,232 million and RMB2,315 million. This approximate net revenue represents a 35% to 40% Year over Year growth.
The company also expects the gross margin to increase by 100-150 basis points as compared to the previous quarter.
Future Outlook
While the strong financial results of Q3 in itself paves the way for Missfresh’s better future prospects, the growing online market further ensures it.
The consumer goods market was always on the path to becoming online but at a steady pace. The Covid-19 pandemic accelerated the transformation and expanded the horizon of the market to become more digital and online. MF’s financial success in Q3 will enable it to further expand its reach within the expanding market by exploring more strategic partnerships. And thus, paving a better future path for Missfresh.
