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Alibaba quarterly profit dives despite sales lifting 7 percent

Alibaba Group said revenue increased 7 percent to RMB 221.87 billion (USD 30.73 billion) in the fourth quarter, coinciding with a double-digit profit decline at the e-commerce giant.

SEE ALSO: Alibaba invests in South Korean fashion app Ably

Quarterly revenue at Alibaba’s domestic commerce arm, Taobao and Tmall Group, increased 4 percent to RMB 93.22 billion with order volume increasing double-digits.

For the quarter ended March 31, revenue from Alibaba international digital commerce (AIDC) group grew 45 percent to RMB 27.45 billion, with the combined orders of AIDC’s marketplaces grew 20 percent year-over-year. During the quarter, AliExpress continued to deliver robust year-over-year order growth, driven by Choice, while Trendyol continued its double-digit order growth. Lazada continued to focus on improving its operating efficiency, said the Chinese e-commerce giant.

During the three months, revenue from Cainiao grew 30 percent to RMB 24.56 billion, driven by revenue from cross-border fulfillment services supporting AliExpress, and revenue from Local Services Group grew by 19 percent to RMB 14.63 billion, driven by both and Amap.

Despite the revenue uptick, Alibaba reported an 86 percent plunge in fourth-quarter profit, primarily due to valuation changes from equity investments. Group net income fell to RMB 3.27 billion yuan, compared with RMB 23.52 billion a year ago.

Coinciding with the earnings update, the company also announced it once again plans to upgrade its secondary listing in Hong Kong to a primary listing, while retaining its primary listing in New York. The company first floated the idea in 2022, adding it aims to complete the dual-primary listing by August.

Last month, Alibaba Group took a minority stake in South Korea’s Ably, serving as the Chinese e-commerce giant’s latest investment in the Korean market. Earlier this year, Alibaba flagged plans to invest USD 1.1 billion over the next three years to create a logistics network in South Korea, as it looks to take on local e-commerce giant Coupang by leveraging low prices and speedy deliveries.