Alibaba profits surge as customer numbers jump during lockdown

The Chinese ecommerce titan posted a 30% spike in EBITDA to RMB51bn (£5.4bn) during the three months to June 30. 

Total revenues across the group swelled 34% to RMB153bn (£16.4bn), driven by a huge increase in the number of customers purchasing products from its retail marketplaces during the coronavirus crisis.

Alibaba said the number of monthly active users on mobile hit 874 million in June, an increase of 28 million compared with March levels.   

The number of active customers on its marketplaces, which include Taobao, Tmall and Lazada, reached 742 million during the 12 months to June – an increase of 16 million compared with the previous year.

On Tmall, gross merchandise value jumped 27% during the quarter as shoppers bought more online during periods of lockdown, which China is now emerging from.

Tmall Global, which helps international brands sell to Chinese customers, registered a 40% spike in gross merchandise value as Chinese consumers sought out overseas brands at a time when they are unable to travel abroad to make purchases.

Alibaba added that at Freshippo, its bricks-and-mortar grocery business, which operates 214 stores, online penetration remained above 60% during the quarter. 

Alibaba Group chair and chief executive Daniel Zhang said: “Alibaba delivered excellent results this past quarter. We were well positioned to capture growth from the ongoing digital transformation, which has been accelerated by the pandemic, in both consumption and enterprise operations. 

“We mobilised our entire digital infrastructure to support the economic recovery of businesses across a wide range of sectors, while broadening and diversifying our consumer base by addressing their changing preferences in a post-Covid-19 environment. 

“Despite these unusual times, we remain focused on the long term, on fulfilling our mission, and on creating true value for our consumers and business customers.”