Alibaba Group’s logistics subsidiary Cainiao Smart Logistics saw revenue and profits decline last quarter, driven by a reduction in income from its cross border and domestic services as it restructures some of its operations.
For the quarter ending December 31, 2024, Cainiao delivered revenues of RMB 28,241 million (US$3,869 million), a decrease of -1% compared to RMB 28,476 million in the same quarter of 2023. Adjusted EBITA, meanwhile, decreased by 76% to RMB 235 million (US$32 million), compared to RMB961 million in the same quarter of 2023.
According to Cainiao, the results are primarily due to the decrease in profits from cross-border fulfilment solutions and domestic logistics services.
“This is the result of ongoing restructurings with our e-commerce businesses taking on certain logistics platform roles,” it noted. “Cainiao will continue to focus on building its global smart logistics network and make its end-to-end logistics capabilities available to our own e-commerce businesses as well as third parties.”
Q1 and Q2 results
