Alibaba Group Holding announced revenues for the June quarter remained stable at RMB 205.56 billion (USD 30.69 billion), with growth adversely impacted by a decline in its China commerce segment revenue.
The Hangzhou, China-based company said revenues in its commerce segment fell by 1 percent year-over-year to RMB 141.94 billion, offset by revenue growth of its cloud segment by 10 percent to RMB 17.69 billion.
For the quarter ended June 30, 2022, online physical goods GMV generated on Taobao and Tmall, excluding unpaid orders, declined mid-single-digit year-over-year, mainly due to impacts from Covid-19 resurgence and restrictions that resulted in supply chain and logistics disruptions in April and most of May. In late May, as logistics capacity normalised, Alibaba saw recovering GMV, driven by a successful 6.18 Shopping Festival, which achieved positive paid GMV growth year-over-year.
Also hit by Covid, GMV declined for key categories such as fashion and accessories and consumer electronics during the quarter. Despite this, the company continue to observe increasing consumption in the healthcare category as well as interests-based consumption categories such as pet care, collectibles and outdoor and active gears. Moreover, Taobao and Tmall continue to achieve high buyer retention, especially among consumers with higher spending power.
Alibaba’s direct sales and others revenue grew 8 percent year-over-year to RMB 64.71 billion, primarily driven by strong growth of online purchases of food, grocery and FMCG goods that benefitted Freshippo, Tmall Supermarket and Sun Art, partly offset by softening offline sales due to Covid.
The company’s international commerce retail businesses including Lazada, AliExpress, Trendyol and Daraz declined by 4 percent year-over-year.
Net income attributable to ordinary shareholders was RMB 22.74 billion and net income was RMB 20.3 billion.
“During the past quarter, we actively adapted to changes in the macro environment and remained focused on our long-term strategy by continuing to strengthen our capability for customer value creation,” said Daniel Zhang, chairman and chief executive officer of Alibaba Group.
“Following a relatively slow April and May, we saw signs of recovery across our businesses in June. We are confident in our growth opportunities in the long term given our high-quality consumer base and the resilience of our diversified business model catering to different demands of our customers.”