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Indonesian e-commerce giant Blibli sees 59% increase in Q3 profits
Blibli, the Indonesia-based ecommerce giant, reported a third-quarter revenue of US$237.4 million, reflecting a 3% year-on-year decline. Despite this, the company witnessed a significant 59% increase in quarterly gross profit, reaching US$34.9 million.
The overall total processing value for Blibli experienced an 8% rise, amounting to US$1.1 billion, driven by growth in third-party retail services. Although the company’s EBITDA remains negative, it showed improvement, narrowing by 28% to -US$52.6 million.
Blibli attributes the surge in gross profits to a more favourable product mix in its first-party retail segment (B2C online sales). The company’s strategic focus on more lucrative product categories in this segment is expected to sustain the upward trend in gross margins.
Revenue generated by Blibli includes contributions from third-party retail, corporate customers, and physical stores. Third-party retail net revenue more than doubled in Q3, reaching US$18 million.
Kusumo Martanto, Blibli CEO and co-founder, emphasized the company’s plan to expand its offline store presence in various cities, having added more consumer electronics outlets over the past nine months.
While Blibli went public in November 2022, securing US$510 million, its cash and cash equivalents decreased by 53% year on year to US$92.7 million.
Supported by the Djarum Group, Blibli merged with Tiket.com and acquired Ranch Market last year to create a new “ecosystem.”
In May, Blibli announced its intention to issue up to 4 billion shares (3.38% of the company) as part of its management and employee stock option program, providing compensation to the management team and employees in the form of shares.
Meanwhile, Indonesia had prohibited e-commerce transactions on social media in September, dealing a significant setback to TikTok’s plans to invest billions of dollars in Southeast Asia, particularly in Indonesia, the largest economy in the region. According to the deputy trade minister, TikTok is “currently in the stages of acquiring” an e-commerce permit from the Indonesian government, as reported by the state news agency.
