Online retailer giant reports bumper loss for Q1 as lockdown bites
Chinese ecommerce and logistics giant JD lost 3 billion yuan in Q1 compared to a profit of 3.6 billion yuan in the same period last year and reported its slowest Q1 revenue growth since going public. Most lockdowns and Covid restrictions in China didn’t appear until April, which could weigh further on the company’s revenue in the current quarter.
According to more recent data from analytics firm Guoyun, sales in the food and beverage category on JD fell 8.2% y/y in April.
Within that segment, sales of basic foodstuffs such as grains, cooking oil, and seasonings rose 25% y/y. Other segments saw declines in sales volumes including imported food falling 14% y/y and snack foods falling 9.2% y/y.
Online retailers such as JD have become major sales outlets for imported food products, including more specialty or high-value items such as beef. Recent data is showing that consumers are increasing their spending on basic staples while reducing their spending on imported food or at restaurants, moves which could weigh on imported meat demand.
Grain Imports in April
Animal & Feed Price Update