JD Logistics (2618) Q1 2025 earnings summary

Executive summary

• Achieved total revenue of RMB 47 billion in Q1 2025, up 11.5% year-over-year, with external customer revenue rising 10.3% to RMB 32.3 billion.

• Non-IFRS profit reached RMB 751.5 million, up 13.4% year-over-year, with a stable non-IFRS profit margin of 1.6%.

• IFRS profit was RMB 610.6 million, up 89.5% year-over-year, with an IFRS profit margin of 1.3%.

• Continued focus on automation, customer experience, and efficiency, driving high-quality development and market competitiveness.

• JD Logistics expanded international operations, launching new air routes and warehouses in Poland and the Middle East.

Financial highlights

• Revenue from ISC customers reached RMB 23.2 billion, up 13.2% year-over-year; ISC revenue from JD Group was RMB 14.7 billion, up 14.1%.

• Revenue from other customers, mainly express and freight delivery, was RMB 23.8 billion, up 9.8% year-over-year.

• Gross margin for Q1 2025 was 7.2%, down from 7.7% year-over-year.

• Non-IFRS EBITDA was RMB 3.8 billion, up 2.9% year-over-year, with an 8% margin (down from 8.7%).

• Free cash outflow was RMB 2.2 billion, compared to RMB 0.3 billion outflow in Q1 2024.

Outlook and guidance

• Confident in delivering double-digit revenue growth for the full year, supported by differentiated and value-added services.

• IFRS profit expected to grow at mid-single digit for the year; gross profit margin may fluctuate due to ongoing investments.

• ARPC expected to increase in the medium to long term through improved product mix and value-added services.