Suning Tesco’s third quarterly report: revenue of 55.538 billion yuan, loss narrowed

21st Century Business Herald reporter Ni Yuqing reported in Shenzhen

On the evening of October 28, Suning.com released its third quarterly report for 2022. In the first three quarters, Suning.com achieved an operating income of 55.538 billion yuan, down 51.95% year-on-year, and a loss of 4.545 billion yuan, a year-on-year decrease of 39.94%.

At the same time, its comprehensive gross profit margin increased by 6.30% year-on-year, accumulated EBITDA of 1.182 billion yuan, and net operating cash flow increased by 105.61% year-on-year.

From the perspective of the general environment, the consumer market fluctuated greatly during the reporting period, and the home appliance industry recovered slowly. According to the statistics of Aowei, 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.

According to the financial report data, in July and August 2022, the core business of Suning.com’s home appliance 3C has achieved year-on-year sales growth. In September, affected by the epidemic control policy, although the company increased its promotion efforts, the sales scale still fell a lot. In the third quarter, the 3C core business of home appliances basically achieved stable sales, operating income increased by 3.20% year-on-year, and offline store sales continued to recover.

At the same time, the retail cloud business, which mainly focuses on the county market, has developed steadily. As of September 30, the number of stores reached 9,796. Among them, 1,583 new stores were opened in the first three quarters, and 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, and Suning.com further opened up its 3C supply chain capabilities for home appliances. .

Regarding the current state of losses, the financial report pointed out that a very important reason is that Carrefour’s business is affected by multiple factors, which makes the scale decline rapidly and the higher fixed rental costs are difficult to share. In the third quarter, Suning.com has comprehensively adjusted its Carrefour business. On the one hand, it closed some regional stores and focused on operating in advantageous cities to improve 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.

Since the beginning of this year, Suning.com has also accelerated the pace of innovation and change, and promoted cost reduction and efficiency improvement. For example, the company continued to optimize the organization and improve human efficiency, and continued to strengthen the management and control of other advertising and logistics expenses. In the first three quarters, operating expenses decreased by 44.13% year-on-year, and total expenses decreased by 36.82% year-on-year. Without considering factors related to non-operating cash flow, Suning.com achieved EBITDA of 323 million yuan in the third quarter.

According to the financial report, on the whole, the operation was further stabilized in the third quarter. Although the sales volume of goods still decreased by 5.43% year-on-year, the comparable store sales revenue of 3C home and living professional stores for home appliances achieved a year-on-year increase of 12.18%. The impact of the sexual market environment, on the one hand, is the sales impact brought about by closing stores. As the adjustment of the company’s low-performing stores is basically completed, the “Suning Yijia” model will gradually mature, and will gradually open the development of high-quality stores of Suning.com. The current rent level is controllable, and the way of integrating the resources of high-quality stores of Carrefour and Suning Department Store , to increase the incremental market size.