Xiaomi today reported the financial results of the fourth quarter of 2022 and accordingly the entire last year as a whole. It turns out that in the last quarter of 2022, sales and profit fell to record levels due to a market slowdown and outbreaks of COVID-19 in China. However, the picture at the end of the year was only slightly less bleak.
According to Reuters, revenue for the fourth quarter was about $9.6 billion, down about 22.8% from $12.4 billion for the same period in 2021. Although the company showed slightly better sales than expected by experts, we are still talking about a fourth quarter in a row of a decline in sales and the strongest slump in the history of statistics.
Net income for the last three months of 2022 fell 67.3% to $212.3 million compared to $650.3 million a year earlier.
The full year 2022 results were a bit more optimistic, but only based on the first three quarters metrics. For example, the company’s revenue in 2022 was $40.7 billion, down 14.7% year over year, while net income also fell more than 50% to $1.2 billion .The profit decline was 61.4%. Analysts’ expectations were not justified for either indicator.
Overall, China’s fourth-quarter consumption fell across most food categories, and the sudden lifting of strict hygiene restrictions sparked multiple outbreaks of COVID-19 across the country. According to Canalys, sales of other major brands in China also fell during the same period. However, in this case, Xiaomi also set an anti-year-over-year record as shipments fell nearly 37% — more than any of its peers.
However, the company does not lose optimism and is preparing to implement new ambitious projects. It was recently reported that Xiaomi plans to start producing its own electric vehicles before mid-2024.