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| Robots deliver packed goods at Coupang's fulfillment center in Daegu. Courtesy of Coupang |
E-commerce firm earns $100 million operating profit
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| Coupang founder and CEO Bom Kim / AP-Yonhap |
Coupang, a New York Stock Exchange-listed, Seoul-based e-commerce firm, registered an operating profit of over $107 million in the first three months of this year, despite recession woes fanned by higher borrowing rates and inflation, market watchers said Wednesday.
Further bolstering the three consecutive quarters of robust operating profit were sales in the same period coming to an all-time high of $5.8 billion. Net income of $90.8 million is a significant turnaround from a year earlier when it registered a net loss of $209 million.
Observers say the strong first-quarter earnings are a sign of stable profit this year, meaning the firm can snap out of years of losses since its launch in 2010.
According to data submitted to the U.S. Securities and Exchange Commission, the local e-commerce firm's combined free cash flow in the past 12 months registered a surplus of $451 million.
Sales from its key growth drivers Coupang Play, a movie and streaming service, Coupang Eats, a food delivery service, overseas businesses and fintech businesses came to $150.1 million, down 17 percent from a year earlier.
However, in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) figures, the losses were limited to $47.45 million, about half of last year's $93.74 million. Its EBITDA-adjusted margin rate stood at 4.2 percent, a considerable improvement from -1.8 percent last year.
"We have an opportunity to transform the lives of our customers in the coming years," said Coupang founder and CEO Bom Kim.
The overwhelming majority of the retail market is still offline, where prices are high and selection is limited, he added.
"According to one study, Korean consumers have access to less than 10 percent of the retail space per capita available to their U.S. counterparts," he said. "We've made unmatched investments to offer customers something much better: vast selection, low prices and exceptional service. Now any merchant can capture the growth of our end-to-end network through Fulfillment and Logistics by Coupang, or Rocket Growth, where units sold are up nearly 90 percent year over year."
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