Alibaba Reports Mixed Q3 Results

Power Retail By Power Retail | 14 May 2021

Alibaba Group has released its financial update for the third quarter, producing a mixed bag of results following its Anti-Monopoly fine.

Alibaba has reported a net loss of 7.6 million yen (AUD $1.54 million, or negative four percent of revenue) following its Anti-Monopoly fine earlier in the year.

Despite copping the hefty fine, the Chinese e-commerce giant is also reporting revenue of 187.4 million yen (AUD$376.2 million), an increase of 64 percent YoY. Its core commerce segment increased by 72 percent for the quarter, reaching $32.4 million.

Alibaba also reported its ‘historic’ achievement of hitting one billion active customers across the globe, as of March 2021. Further, its Chinese retail marketplace recorded 811 million active customers for the 12 months ending March 2021, an increase of 32 million.

“Our overall business delivered strong growth on a healthy foundation, with the Alibaba Ecosystem generating a record US$1.2 trillion in GMV during this fiscal year. Such achievements were built on top of clear value propositions that we offer to consumers and merchants,” shared Daniel Zhang, the Chairman and EO of Alibaba Group.

“We remain very excited about the growth of China’s consumption economy, which is benefiting from the acceleration of digitalization in all aspects of life and work. We will continue to focus on customer experience and value creation through innovation, as we pursue our mission to make it easy to do business anywhere in the digital era,” he said.

The conglomerate reported growth of 32 percent for its organic revenue, excluding the consolidation of its recently acquired Sun Art. “This was driven by robust performance of our core commerce businesses as well as [the] continued growth of Alibaba Cloud,” shared Zhang.

Its adjusted EBITDA grew 25 percent YoY, and the company expects to generate revenue of $186.7 billion in 2022, Zhang shared. “Given the market potential and our proven profit and cash flow generation capabilities, we plan to use all of our incremental profits and additional capital in [the] fiscal year 2022 to support our merchants and invest into new businesses and key strategic areas that will help us increase consumer wallet share and penetrate into new addressable markets,” he said.

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