Alibaba recorded a drop in net profit by 88%, but turnover grew by 22%

Alibaba recorded a drop in net profit by 88% in the fourth quarter of the financial year 2020, due to the impact of the coronavirus pandemic which has caused the interruption of its supply chains, by therefore limiting its delivery capacity.

Turnover grew by 22% to 114.31 billion yuan, about 16 billion dollars. The company is expecting to record a turnover higher than 650 billion yuan, 91.5 billion dollars, during the current financial year.

Net profit amounted at 3.16 billion yuan (447 million dollars) in the quarter closed in March. The company has attributed its negative performance mainly to a loss related to net investments.

The net profit for American Depositary Share was about 1.16 yuan, by highlighting a strong decrease compared to 9.84 yuan earned last year. The adjusted EPS amounted at 9.2 yuan instead, higher than the analysts’ expectations of 6.05 yuan.