JD.com demonstrated significant achievement in its fourth-quarter results, showcasing a robust double-digit growth across a majority of its product categories, whilst reflecting the improving consumption trends in the Chinese market. The company released its financials on Thursday, revealing adjusted earnings of 7.42 renminbi (approximately $1.02) per American depositary share for the period ending in December.
This figure marked an increase from 5.30 renminbi a year earlier and exceeded the consensus estimate from FactSet, which was set at 6.20 renminbi. Furthermore, JD.com’s revenue escalated by 13% year-over-year, amounting to 346.99 billion renminbi, again surpassing market expectations that anticipated a revenue of 330.66 billion renminbi.
This robust financial performance sparked a 2% increase in JD's Nasdaq-listed shares during premarket trading. The company’s Chief Executive Sandy Xu expressed satisfaction with the results, stating, "Our topline growth returned to double digits year-on-year, and bottom line also achieved healthy expansion." Xu highlighted that nearly all product categories, along with vital metrics such as quarterly active users and shopping frequency, showcased strong double-digit growth year-on-year during the fourth quarter.
This growth reflects JD.com’s increasing presence and preference among consumers. Breaking down the revenue streams, the retail segment witnessed a remarkable ascension, rising to 307.06 billion renminbi from 267.65 billion renminbi observed in the same period last year. JD’s logistics division experienced revenue growth as well, reaching 52.1 billion renminbi compared to 47.2 billion renminbi from the prior-year duration.
However, JD.com saw a 31% decline in revenue from new businesses, which stood at 4.68 billion renminbi. Notably, the electronics and home appliances segment reported a 16% increase in revenue, totaling 174.15 billion renminbi, while general merchandise sales expanded by 11% to reach 106.83 billion renminbi.
The service revenue also grew, rising to 66.01 billion renminbi from 59.58 billion renminbi the previous year. Chief Financial Officer Ian Su Shan remarked, "The momentum was broad-based across multiple categories and revenue streams, reflecting positive macro consumption trends and JD's expanding market share." He continued to emphasize that JD’s profitability has been on an upward trajectory year-on-year throughout 2024, primarily due to strategic optimizations in cost management and operational efficiency.
The adjusted operating margin recorded a noteworthy 3% compared to 2.5% in the corresponding quarter of the previous year. Despite the rise in general and administrative costs, which increased to 2.46 billion renminbi from 2.38 billion renminbi, fulfillment expenses also saw a significant boost, climbing 16% to 20.12 billion renminbi.
As JD.com looks towards 2025, Xu expressed a tempered optimism, stating, "We head into 2025 with more optimism as consumption sentiment steadily picks up.".