Annual Sales Reach 41.29 Trillion Won
First Domestic Distribution Company to Surpass 40 Trillion Won
Operating Profit at 602.3 Billion Won, Down 2.4% Year-on-Year
Impact from Fair Trade Commission Fine and Ordinary Wage Expenses Reflected
Coupang continued its steady growth last year, becoming the first domestic distribution company to surpass annual sales of 40 trillion won. Operating profit also remained positive for the second consecutive year, but profit size slightly decreased compared to the previous year due to expenses such as fines imposed by the Fair Trade Commission.
Coupang Inc., the parent company of Coupang and a publicly traded company on the New York Stock Exchange, announced on the 26th that its sales last year reached 41.29 trillion won (30.268 billion USD), a 29% increase from the previous year (31.83 trillion won / 24.383 billion USD). Operating profit for the same period was 602.3 billion won (436 million USD), down 2.4% from the previous year (617.4 billion won / 473 million USD). Following its first annual operating profit in 2023, the company maintained profitability for two consecutive years, though the profit size decreased. This was due to the inclusion of a 162.8 billion won fine ordered by the Fair Trade Commission in Q2 last year and accounting expenses related to the Supreme Court’s ruling on ordinary wages (approximately 40.1 billion won). Net profit last year was 94 billion won (66 million USD), a 95% decrease compared to the previous year (1.36 billion USD). The operating profit margin relative to annual sales also fell by about 0.5 percentage points to 1.46% from 1.94% the previous year.
Coupang’s Q4 sales last year reached a record quarterly high of 11.11 trillion won (7.965 billion USD; quarterly average exchange rate 1,395.35 KRW/USD), a 28% increase year-on-year, and operating profit rose 154% to 435.3 billion won. Coupang explained that the Q4 operating profit included 244.1 billion won received from fire insurance compensation for the Deokpyeong logistics center. Q4 net profit was 182.7 billion won (131 million USD), down 87% from 1.3614 trillion won (1.032 billion USD) the previous year. The company noted that the Q4 2023 net profit was temporarily inflated due to a one-time non-cash tax benefit of 895 million USD from deferred tax asset recognition and changes in tax-related expenses.
Specifically, the growth businesses?including the global online luxury platform Farfetch, Taiwan Rocket Delivery, Coupang Eats, and Coupang Play?achieved sales of 4.88 trillion won (3.569 billion USD) last year, more than quadrupling from 1.03 trillion won the previous year, driving overall sales growth. However, the annual adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) loss of these growth businesses increased by 35% to 860.6 billion won (631 million USD) from 466 million USD the previous year, slightly worsening profitability.
Growth business sales in Q4 last year were 1.51 trillion won (1.082 billion USD), a 319% increase from 360.1 billion won (273 million USD) the previous year. Notably, Farfetch, acquired by Coupang Inc. early last year, achieved its first adjusted EBITDA profit of 41.8 billion won (30 million USD) in Q4. Additionally, product commerce segments such as Rocket Delivery, Rocket Fresh, Rocket Growth, and Marketplace posted Q4 sales of 9.6 trillion won (6.883 billion USD), a 16% increase year-on-year.
Meanwhile, the number of 'active customers'?those who purchased products at least once per quarter on Coupang?reached 22.8 million, a 10% increase from 20.8 million the previous year. Average sales per customer also rose 6% to 446,500 won (320 USD).
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