JD.com's Q1 Net Profit Surpasses Expectations, Up 13.9% YoY; Logistics Business Turns Profitable

Thanks to the rapid expansion of $JD LOGISTICS(02618.HK)$ and steady growth in JD Retail, $JD.com(JD.US)$ ’s first-quarter revenue and profit both exceeded market expectations, with net profit growing by double digits in percentage terms.

JD.com reported healthy growth in the supermarket category in Q1, with both GMV and revenue increasing by double digits, along with higher order volumes and shopping frequency.

On Thursday, JD.com released its financial results showing:
- Q1 net revenue (ending March 2024) grew 7% year-on-year to 260.05 billion RMB, exceeding market estimates of 258.35 billion RMB.
- Net profit rose 18.8% year-on-year to 7.37 billion RMB; net profit attributable to ordinary shareholders increased 13.9% year-on-year to 7.1 billion RMB, beating market expectations.
- Adjusted EBITDA grew 14% year-on-year to 10.79 billion RMB, higher than the forecasted 9.5 billion RMB.
- Adjusted operating profit margin was 3.4%, up from 3.2% a year ago, and higher than the estimated 3%.
- Adjusted EBITDA margin was 4.1%, up from 3.9% a year ago.
- Adjusted EPS was 5.65 RMB per ADS, compared to 4.76 RMB a year ago, surpassing the expected 4.67 RMB.