Cainiao Q3 results: revenue grew 24% year-over-year to US$4,011 million
Alibaba Group has announced its earnings results for the quarter ended December 31, 2023.
Financial and business highlights of Cainiao Smart Logistics Network Limited in the same quarter.
- Cainiao’s revenue grew 24% year-over-year to RMB28,476 million (US$4,011 million), primarily driven by revenue from cross-border fulfillment solutions. The Company delivered an adjusted EBITA of RMB961 million (US$135 million), demonstrating improved profitability.
- For cross-border logistics, Cainiao further expanded coverage for its premium 5-day delivery service to 10 countries, with the addition of two new countries this quarter. Order volume for the premium 5-day delivery service achieved robust triple-digit quarter-over-quarter growth.
- Additionally, Cainiao has upgraded its logistics solutions for key countries and markets across North America and Latin America.
- North America: Cainiao launched parcel forwarding services in the United States, offering as fast as 5-day delivery via air freight and 15-day delivery via sea freight. The services also support one-click consolidation of parcels across its entire network.
- Latin America: Cainiao launched the first China-Mexico express cargo flight route, allowing consumers in Mexico to receive packages from China in as fast as 10 days.
- Cainiao is rapidly expanding its local logistics infrastructure overseas. In Spain, for instance, Cainiao’s self-operated local express network now covers 47 key regions, providing a wide range of logistics services, including cross-border small-parcels delivery, local warehouse dispatch, last-mile delivery, and intra-city delivery, for local Spanish and cross-border Chinese merchants.
- Recently, Cainiao announced partnerships with leading brands across various industries, from chain restaurants, liquor, electric vehicles and automotive parts, photovoltaics, to home decor. Notable partnerships include McDonald’s China, Maotai Distillery Logistics, Dongfeng Honda Automobile, Tongwei, and LINSY, among others.
- In Hong Kong, Cainiao launched the “One-Click Pickup” service through its Cainiao App, which is available at over 130 Cainiao self-pickup points across the city (as of the end of January 2024). Moreover, customers in Hong Kong now have the option to return packages at Cainiao’s self-pickup points, in addition to the existing doorstep pick-up and return service.
“We delivered a solid quarter as we are executing our focused strategies across the organization. Our top priority is to reignite the growth of our core businesses, e-commerce and cloud computing. We will step up investment to improve users’ core experiences to drive growth in Taobao and Tmall Group and strengthen market leadership in the coming year. We will also focus our resources on developing public cloud products and sustaining the strong growth momentum in international commerce business,” said Eddie Wu, Chief Executive Officer of Alibaba Group.
“Alibaba Group delivered a healthy quarter with revenue growth of 5% year-over-year. We increased our investment in strategic priorities and improved shareholder return by leveraging our strong balance sheet and cash flow. Our board of directors approved an increase of US$25 billion to our share repurchase program, demonstrating our confidence in the outlook of our business and cash flow. Our consistent share repurchase has also reduced outstanding share count while achieving EPS and cash flow per share accretion,” said Toby Xu, Chief Financial Officer of Alibaba Group.
