Alibaba experienced a 3 percent jump in revenues to 207.2 billion yuan renminbi (€28.1bn) from RMB 200.7 billion for the period ended Sept. 30. The increase occurred despite the Covid-19 resurgence in China that depressed consumer demand, currency volatility, higher logistics costs and slowing cross-border commerce.
China sales fell by 1 percent to RMB 135.4 billion (€18.4bn) as international revenues rose 4 percent to RMB 15.7 billion (€2.1bn), and Cloud sales increased by 4 percent to RMB 20.8 billion (€2.8bn). The Taobao and Tmall businesses in aggregate suffered a low single-digit sales drop year-over-year on soft demand, the Covid-19 resurgence and restrictions, and competition. But apparel and accessories experienced a lower year-over-year decline than other segments, as outdoor, active gear and pet care “continued to exhibit resilient demand.”
Third-quarter operating income rose 68 percent to RMB 25.1 million (€3.4bn) thanks to an increase in adjusted Ebita to RMB 36.2 billion (€4.9bn) and lower share-based compensation costs. The operating margin improved to 12 percent from 7 percent in the year-ago period. The net loss attributable to shareholders was RMB 20.6 billion (€2.8bn) and related largely to net losses from Alibaba’s investments in public companies.
The 23-year-old company, which was listed on the New York Stock Exchange in 2014, said it has adopted a holistic approach to improving its operating efficiency and cost optimization.
“The uncertainties of the global landscape have only reinforced our resolve to focus on building capacity that will yield sustainable, high-quality growth for our customers and our own business over the long term,” said Daniel Zhang, chairman and CEO of the Alibaba Group.
