Xiaomi Swung to Profit in Third Quarter

By Sherry Qin

Xiaomi swung to a quarterly profit, thanks to improved profit margins in both its smartphone and Internet-of-Things and lifestyle product segments.

The Chinese maker of smartphones and other electronics products said Monday that net profit for the third quarter was 4.87 billion yuan ($675.3 million), compared with net loss of CNY1.47 billion in the year-earlier period. The result beat the estimate of CNY4.52 billion from a poll of analysts by FactSet.

Xiaomi said revenue rose 0.6% to CNY70.89 billion, growing for the first time after six quarters.

Revenue from its smartphone segment was CNY41.6 billion, and global smartphone shipments rose 4.0% to 41.8 million units, it said.

Xiaomi's gross profit margin improved to 22.7% in the third quarter from 21.0% in the previous quarter. Its smartphone gross profit margin was 16.6%, up 7.7 percentage points, on an improved product mix, lower inventory impairment provisions in overseas markets and a decline in prices of key components.

The gross profit margin of its IoT and lifestyle products climbed to 17.8%, up 4.3 percentage points from a year earlier.

Write to Sherry Qin at sherry.qin@wsj.com

(END) Dow Jones Newswires

November 20, 2023 05:51 ET (10:51 GMT)

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