- JD.com reports revenue growth but sees Q4 profitability dip due to unallocated items.
- Full-year income from operations rises 32% to $3.7 billion compared to 2022.
- JD.com announces a new $3 billion share buyback program through March 2027.
Revenue climbs, Q4 profitability dips
Chinese e-commerce giant JD.com reported net revenues of US$43 billion for the fourth quarter of 2023 and US$153 billion for the full year, representing year-on-year increases of 3.6% and 3.7%, respectively.
However, the company’s income from operations for Q4 2023 dropped 58% to approximately US$300 million compared to the same period in 2022.
This decline was attributed to a doubling in unallocated items, including share-based compensation, the effects of business cooperation arrangements, and the impairment of goodwill and intangible assets.
Despite the Q4 profitability hit, JD.com‘s full-year income from operations rose 32% to US$3.7 billion compared to 2022.
New share repurchase program
JD.com generated US$8.4 billion in positive operating cash flow and US$5.7 billion in free cash flow for the full year of 2023, indicating the company’s ability to generate sufficient cash from its operations while still investing in growth opportunities.
In addition, JD.com‘s board of directors has approved a new share repurchase program, set to take effect when the current one expires on March 17.
The new program authorizes the company to buy back up to US$3 billion worth of shares over the next three years through March 2027, demonstrating the company’s confidence in its future prospects and commitment to enhancing shareholder value.
To read the original article in its entirety: https://www.techinasia.com/jdcom-announces-share-repurchase-program-2023-revenue-inches-income-rises
