(Reuters) – Chinese group Alibaba Holding reported fourth-quarter revenue up 7%, above expectations, driven by growth in sales of low-cost products.

Revenue stood at 221.87 billion yuan (28.41 billion euros) in the three months ending March 31, compared with an estimate of 219.66 billion yuan, according to a consensus from LSEG.

Alibaba emphasized low-priced products to respond to consumer caution, which helped boost domestic e-commerce sales during the period.

Alibaba’s domestic commerce businesses, Taobao and Tmall Group, grew 4 percent year-on-year, with a double-digit increase in order volume.

Alibaba also reported strong growth in its international business, up 45%, above the 39% expected by analysts. They expected the increase given the company’s investments in the international market and consumers’ appetite for low-cost products from China.

The group still recorded an 86% drop in profit attributable to shareholders in the fourth quarter, to 3.27 billion yuan, compared to 23.52 billion yuan a year ago.

It also saw its losses almost double to 4.1 billion yuan, from 2.2 billion yuan a year ago, due to massive investment to remain price competitive and shorten delivery times. .

Alibaba stock listed in the United States fell around 3% in pre-market trading.

The company has had a tumultuous year since announcing the biggest shakeup in its 25-year history in March 2023, splitting itself into six units and refocusing on its core businesses, including domestic e-commerce. .

Moreover, since the pandemic, Chinese consumers have spent cautiously due to the economic slowdown and the collapse in real estate.

(Written by Akash Sriram in Bangalore and Casey Hall in Shanghai; Gaëlle Sheehan, edited by Kate Entringer)

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