Suning.com’s revenue in the first three quarters was 55.538 billion yuan, with operating expenses down 44.13% year-on-year

Reporter | Cheng Lu

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On the evening of October 28, Suning Tesco released its third quarterly report. According to the financial report, in the first three quarters, Suning.com achieved an operating income of 55.538 billion yuan and a cumulative EBITDA of 1.182 billion yuan, of which the third quarter achieved EBITDA of 323 million yuan and continued to maintain EBITDA profitability.

According to the financial report, the home appliance industry is under pressure as a whole this year, and the recovery is slow. Beginning in June, with the successive introduction of policies to stimulate consumption in various places, the market has recovered. However, in September, affected by the spread of the epidemic, the market growth rate dropped. Overall, according to statistics from relevant institutions, the overall retail sales of the home appliance market from January to September fell by 1.4% year-on-year, of which the overall retail sales of the home appliance market in September fell by 4.2% year-on-year.

Specifically in the third quarter, the overall sales volume of Suning.com’s Q3 company decreased by 5.43% year-on-year, which was significantly narrower than the 55.88% year-on-year decline in the first half of the year; the operating income was 18.328 billion yuan, down 16.57% year-on-year. Compared with the year-on-year decline of 60.25% in the first half of the year, it has narrowed significantly. In the first three quarters, the company’s overall merchandise sales decreased by 46.50% year-on-year, and the net cash flow from operating activities was 250 million yuan.

In general, although Suning.com is affected by market fluctuations such as the impact of the epidemic and the downturn in the real estate market externally, and is still affected by insufficient liquidity internally, with the support of Jiangsu Province, Nanjing Municipal Government, suppliers and partners, The company focuses on the core business of home appliance 3C and promotes the transformation and adjustment of Carrefour’s supermarket business.

In terms of core business, the company’s home appliance 3C core business achieved growth in Q3, and comparable store sales revenue increased by 12.18% year-on-year. The total sales volume of retail cloud products in Q3 increased by 6.72% year-on-year and 20.62% month-on-month.

In terms of cost control, the company continued to optimize the organization and improve human efficiency, and continued to strengthen the management and control of other advertising and logistics costs. In the first three quarters, operating expenses decreased by 44.13% year-on-year, and total expenses decreased by 36.82% year-on-year.

The company’s net profit attributable to the parent company in the first three quarters was -4.545 billion yuan, a year-on-year decrease of 39.94%, of which the third quarter realized a net profit attributable to the parent company of -1.805 billion yuan, a year-on-year decrease of 56.16%.

In terms of specific business, Suning.com focused on the core advantages of home appliances and promoted the sales and promotion of mid-to-high-end products. The comprehensive gross profit margin in the first three quarters increased by 6.30% year-on-year. Promote the integration of renovation and Carrefour stores in China, and launch the “Suning Yijia” store model for the first- and second-tier markets.

The retail cloud business, which mainly focuses on the county market, opened 1,583 new stores in the first three quarters. The total sales volume of retail cloud products in the third quarter increased by 6.72% year-on-year and 20.62% month-on-month. In terms of online business, the sales volume of Suning.com’s Tmall flagship store in the third quarter increased by 47.81% year-on-year. At the same time, Suning.com has opened up its own 3C supply chain capabilities for home appliances, and its stores have settled in Meituan.

However, Suning.com also emphasized in the financial report that the company is still in a state of net profit loss. A very important factor is that the Carrefour business has been affected by multiple factors, resulting in a rapid decline in scale and difficulty in sharing higher fixed rental costs.

At present, the company has carried out a comprehensive adjustment of Carrefour’s business in the third quarter. On the one hand, it closed some regional stores, focusing on the operation of advantageous cities, and improving the economies of scale; Increase the income from the home appliance business with strong profitability and share fixed costs; in addition, Carrefour itself accelerates the adjustment of commodity structure, and the operation of local e-commerce and community e-commerce accelerates adaptation to market changes and achieves a month-on-month improvement in scale.

According to the financial report, in the fourth quarter, Suning.com will further consolidate and optimize its revenue and expenses, and strive to achieve continuous improvement in operations.