• Indonesian e-commerce major Blibli saw Q3 revenue dip 3% but gross profit jumped 59% to a record $34.9M.
• Losses also narrowed 28% and order value grew 8%, signs of traction since merging with travel site Tiket.com.
• With IPO cash reserves now halved, pressure mounts to reignite growth.
Summary
Blibli, Indonesia’s leading online retailer, reported a lower third-quarter revenue of $237 million, a 3% dip compared to last year. However, gross profit hit an all-time high of $34.9 million, jumping 59% annually.
Narrowing losses
The e-commerce company also narrowed losses substantially, with the EBITDA deficit shrinking 28% to $52.6 million.
The total order value likewise grew 8% to top $1 billion, evidence that Blibli continues to gain traction since its ecosystem-building merger with travel site Tiket.com and acquisition of grocery chain Ranch Market.
CEO Kusumo Martanto
CEO Kusumo Martanto said concentrating on higher margin categories lifted first-party retail profits, a strategy he expects will further boost margins.
He noted that Blibli aims to expand its physical store footprint after recently adding multiple new consumer electronics outlets.
Future prospects
The growth comes from Blibli’s November 2022 IPO, which raised $510 million. But with cash reserves now down 53%, pressure mounts to reignite expansion engines post-listing.
Martanto will also look to third-party retail, which saw net revenue more than double this quarter.
If Blibli sustains momentum, Indonesia’s $70 billion e-commerce market offers ample room for this homegrown giant to solidify domestic domination.
Indonesian E-commerce Major Narrows Losses Despite Lower Top-Line
