Prosus NV and its parent company Naspers Ltd. have announced a significant milestone as their e-commerce business turned profitable for the first time ever. The achievement comes as Fabricio Bloisi prepares to assume the role of Chief Executive Officer in July, succeeding Bob van Dijk.
The group’s e-commerce division, excluding its stake in Tencent Holdings Ltd., reported a trading profit of $38 million for the fiscal year ending March 31. This marks a notable turnaround from the previous fiscal year, where the unit incurred a substantial loss of $413 million. The transformation underscores the successful scaling efforts undertaken after years of strategic investments across various companies within their portfolio, including iFood in Brazil and PayU in India.
According to a statement released on Monday, the profitability of the e-commerce segment provides a strong foundation for Bloisi as he navigates the challenges of the current internet business landscape. Prosus and Naspers operate in a competitive market where technological innovation and strategic positioning are critical to sustained growth and profitability.
The results reflect ongoing efforts to streamline operations and optimize performance within the e-commerce portfolio, positioning the companies for future growth and resilience. The success in achieving profitability highlights the effectiveness of strategic initiatives implemented under the leadership transition.
Fabricio Bloisi, set to assume the CEO role next month, inherits a business environment shaped by the complexities of internet commerce and the legacy of the company’s previous structural challenges. His appointment signals continuity in leadership with a focus on navigating the evolving market dynamics and capitalizing on emerging opportunities.
Prosus and Naspers’ commitment to e-commerce as a core growth driver remains steadfast, with continued investments aimed at expanding market presence and enhancing operational efficiency across their diverse portfolio of digital businesses. The profitable outcome of the e-commerce division underscores the potential for sustained performance amidst a competitive and evolving global marketplace.
Looking ahead, the companies are poised to leverage their strengthened e-commerce capabilities to capitalize on emerging trends and consumer behaviors, ensuring long-term value creation for stakeholders. The transition in leadership and the achievement of profitability mark a pivotal moment for Prosus and Naspers as they forge ahead in the dynamic landscape of digital commerce and technology innovation.
