Alibaba smashes forecasts to see 34% sales boost despite growing global tensions

Alibaba has beaten analyst estimates and posted runway sales during its last quarter despite a growing global backlash against Chinese companies.

The ecommerce giant saw revenues jump 34 per cent to RMB153 billion (£16.4 billion) in the three months to the end of June.

This came well above analyst forecasts of RMB147.3 billion (£16.1 billion) as 28 million more active shoppers flocked to its various platforms following a cautious first quarter, topping 874 million in June.

Pre-tax earnings also saw healthy growth of 30 per cent to RMB51 billion (£5.4 billion) over the quarter.

This was thanks to the resurgence of its core shopping platforms like Tmall, which sells domestically in China, seeing gross merchandise values rise 27 per cent throughout the quarter.

READ MORE: Alibaba smashes expectations to see 40% revenue jump ahead of IPO

Tmall, Taobao and Lazada saw the number of active customers rise by 16 million to 742 million in the year to June 30, sitting comfortably above its nearest rival Pinduoduo with 628 million active shoppers, and JD.com’s 417 million.

Advert revenues also rose 23 per cent during the period, but commissions on sales rose just 17 per cent as the company said it sold more low-cost goods with lower commissions, while waiving annual fees for merchants.

Meanwhile its cloud computing business also performed strongly, rising 59 per cent compared to the same period last year.

China’s early emergence from lockdown also promted an 80 per cent growth in Alibaba’s grocery arms Freshippo and Tmall Supermarket.

It comes as both the US and China prepare to impose strict restrictions of Chinese companies, seeing billions wiped off the country’s largest companies’ stock values.

“Globalisation is our long-term strategy, but in the near term we are closely monitoring the change of the geopolitical environment, and also the national policy of other countries, and we will adjust our strategies according to this change,” Alibaba’s chief executive Daniel Zhang said.

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