Curly Reports 4.4 Billion KRW Operating Loss in 3Q... Single-Digit Sales Growth

Q3 Transaction Amount 789.2 Billion KRW... 10% Increase YoY
Capital Surplus Used to Offset Deficit... Reflected in Q4 Expected

Kurly announced on the 19th that its operating loss for the third quarter of this year improved by 89% (36.3 billion KRW) compared to the same period last year, recording 4.4 billion KRW.

According to Kurly's Q3 business report disclosed on the same day, Kurly's consolidated sales for the third quarter amounted to 554.3 billion KRW, a 4.8% increase compared to the same period last year. During the same period, adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) recorded 3.9 billion KRW. With this, Kurly has posted positive EBITDA for three consecutive quarters this year.

Kurly's Gross Merchandise Volume (GMV) for the third quarter of this year reached 789.2 billion KRW, a 10.1% increase compared to the same period last year. Transaction volumes in fresh food as well as new business areas such as seller delivery (3P) and beauty showed growth.

Kurly analyzed that the restructuring of the paid membership program Kurly Members to strengthen business competitiveness, the growth of Beauty Kurly, and the expansion of the 'Cul-se-gwon' area where dawn delivery is available were effective.

In the case of Kurly Members, the lock-in effect of the membership, which improved shopping benefits such as daily free delivery, was evident. Members accounted for 49% of the total monthly transaction volume in the third quarter. The purchase conversion rate of members who completed payment was on average 8 times higher than that of non-members, and the average order value was twice as high. Beauty Kurly also showed double-digit growth.

The expansion of Cul-se-gwon, including the start of one-day delivery to Jeju Island and the conversion to dawn delivery in the Honam region (Yeosu, Suncheon, Gwangyang, Gwangju), also contributed to sales growth. Through operational efficiency and cost reduction, the selling and administrative expense ratio for the third quarter of this year decreased by 4 percentage points compared to the same period last year.

Meanwhile, to secure financial stability, Kurly resolved a deficit of 2.2709 trillion KRW on a separate basis last month. This was done by transferring 2.3532 trillion KRW of capital surplus to retained earnings, securing approximately 82.3 billion KRW in retained earnings. Since an extraordinary shareholders' meeting for the transfer of retained earnings was held last month, the changed retained earnings will be reflected in the financial statements from the fourth quarter.

A Kurly official said, "Thanks to the effects of diversifying sales through new business ventures and improving the profit and loss structure based on fixed cost efficiency, we have maintained a positive EBITDA trend for three consecutive quarters this year," adding, "The company will continue to strengthen business stability and strive for sustainable growth."

Curly's Adjusted EBITDA Graph for Q3 This Year. Provided by Curly