JD.com posts quarterly loss as costs rise, revenue growth slows

[BENGALURU] JD.com posted a quarterly loss on Thursday (Mar 10) as its operational costs surged, and reported its weakest revenue growth in 6 quarters amid slowing consumer spending, sending shares in the Chinese e-commerce firm down 6 per cent in premarket trade.

The slowdown in the world's second-largest economy has taken a toll on its e-commerce sector, as consumers cut back on discretionary spending.

Last month, rival Alibaba posted its slowest revenue growth for the same period since going public in 2014.

JD.com, which sells everything from home appliances to luxury goods, said general expenses rose 89 per cent, primarily due to the increase in share-based compensation expenses.

The online retailer, which enjoys a competitive edge over its rivals due to its investments in supply chain and logistics, said fulfilment costs were also up 10.7 per cent.

Net loss attributable to shareholders for the fourth quarter of 5.2 billion yuan, compared to a profit of 24.3 billion yuan last year.

Net revenue rose about 23 per cent to 275.9 billion yuan (S$59.3 billion) in the fourth quarter, while analysts had expected revenue of 274.45 billion yuan, according to IBES data from Refinitiv.

Revenue from JD Retail, the unit that accounts for a majority of the company's revenue from its website, retail partnerships and retail stores, rose nearly 21 per cent. The logistics business saw revenue jump about 28 per cent.

On an adjusted basis, the company earned 2.21 yuan per share, compared with analysts' average estimate of 1.54 yuan. REUTERS