Alibaba’s profits surge by 56% in first 9 months

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News Team

Alibaba, the Chinese e-commerce giant, has reported a net profit of 76,471 million yuan (9,996 million euros) in the first nine months of its fiscal year, which ends on March 31. This represents a 56% improvement compared to the same period the previous year. The company’s turnover between April and December 2023 reached 719,294 million yuan (94,024 million euros), an 8.9% increase from the previous year.

Specifically, Taobao, Alibaba’s commercial business in China, saw a 6% increase in turnover, reaching 341,677 million yuan (44,663 million euros), while the international commercial platform earned 46% more, reaching 75,150 million yuan (9,823 million euros). The Cainiao logistics business achieved a nine-month turnover of 74,463 million yuan (9,733 million euros), with a 27% annual growth. Alibaba’s cloud business had a turnover of 3% more, reaching 80,779 million yuan (10,559 million euros).

However, in the third fiscal quarter, from October to December, Alibaba’s attributable net profit fell by 69.2%, to 14,433 million yuan (1,887 million euros), while its sales grew by 5%, reaching 260,348 million yuan (34,032 million euros).

Eddie Wu, CEO of Alibaba Group, stated that the company had a strong quarter and executed focused strategies across the organization, noting reviving growth in core businesses, e-commerce, and cloud computing as a priority. Alibaba closed 2023 with a total of 219,260 employees, which implies a workforce reduction of 5,695 workers compared to the previous quarter and 20,480 compared to the end of 2022, as well as an adjustment of more than 40,000 employees in 2 years.

The board of directors of Alibaba approved an increase of 25,000 million dollars (23,262 million euros) in its share buyback program until the end of March 2027, bringing the total figure available to the program up to 35,300 million dollars (32,847 million euros) during the next three fiscal years. Toby Xu, chief financial officer of Alibaba Group, stated that the buybacks of shares have reduced the number of shares outstanding and increased earnings per share.

In conclusion, Alibaba has seen significant growth in its various business segments, with a strong focus on e-commerce and cloud computing. The company’s strategic initiatives have led to improved financial performance and confidence in its future prospects. With a continued commitment to innovation and adaptation to market trends, Alibaba is poised for continued success in the years to come.

Image Source: www.infobae.com

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