Coupang Achieves Record Quarterly Revenue in Q1
Operating Profit Surges 340% to 233.7 Billion Won
Taiwan and Farfetch Drive 78% Sales Growth in Q1
Domestic Rocket Delivery Sales Up 16%
"Stable Delivery Foundation Expands Customer Spending"
Beomseok Kim, Chairman and Founder of Coupang Inc., has expressed confidence in the company's 'Rocket Delivery' business in Taiwan. As the growth of Coupang's global businesses, including the Taiwan operation and the luxury e-commerce platform Farfetch, played a key role in boosting first-quarter results, he is signaling expectations for further growth.
Taiwan 'Rocket Delivery' Product Range Expands by 500%, Farfetch Overcomes Concerns
On May 7 (Korean time), during the first-quarter earnings conference call, Kim stated, "In the first quarter, our product assortment in Taiwan expanded by nearly 500%," adding, "We have made significant progress in establishing direct relationships with suppliers, not only with global brands such as Coca-Cola, Pepsi, P&G, and Unicharm, but also with local brands that are extremely important to Taiwanese customers."
On the same day, Coupang Inc., the parent company of Coupang, reported record-high quarterly revenue of 11.488 trillion won ($7.908 billion, based on the average exchange rate of 1,452.66 for the quarter) for the first quarter of this year, surpassing the previous record of 11.1139 trillion won in the fourth quarter of last year. This represents a 21% increase compared to the first quarter of last year (9.4505 trillion won). Both operating profit and net profit also improved significantly. Operating profit reached 233.7 billion won ($154 million), a 340% surge from the same period last year (53.1 billion won). The operating margin was 2%, up from 0.6% last year. Net profit turned positive, reaching 165.6 billion won ($114 million).
The main driver behind the improved results was the growth business segment. This segment includes Farfetch, which Coupang acquired early last year, as well as Taiwan Rocket Delivery and Coupang Eats. Revenue in this segment reached 1.5078 trillion won ($1.038 billion), marking a 78% increase year-over-year. EBITDA was negative 244 billion won, a slight improvement from the loss of 274 billion won in the first quarter of last year.
The fastest-growing business is in Taiwan. Coupang has launched Rocket Delivery in Taiwan and introduced the 'Wow Membership' in the first quarter of this year. Employees from Korea have relocated to Taiwan to strengthen the commerce business. Both repeat visit frequency and spending per customer are on the rise, and feedback from Taiwanese customers has been positive.
Regarding this, Kim stated, "(Coupang) has tremendous potential to deliver the same amazing 'Wow' experience in Taiwan that made a huge impact among Korean consumers," adding, "Continued investment in the Taiwanese market demonstrates growing confidence in the local situation," he explained.
Kim also expressed optimism about the growth of Farfetch. At the time of its acquisition early last year, Farfetch was on the verge of bankruptcy due to management difficulties. However, in the fourth quarter of last year, Farfetch recorded a positive adjusted EBITDA of 41.8 billion won. Kim said, "Farfetch is restructuring its business to move to the next stage," adding, "The core is to provide the world's best luxury products and experiences to customers anywhere in the world, and in line with this strategy, we are streamlining customer service and operations."
Domestic Rocket Delivery Sales Grow by Over 16%
Revenue from the Product Commerce segment (Rocket Delivery, Rocket Fresh, Rocket Growth, Marketplace) reached 9.9797 trillion won ($6.87 billion), a 16% increase from the same period last year. The number of active customers was 23.4 million, up 9% from 21.5 million a year earlier. The number of active customers refers to those who made at least one purchase from Coupang in the first quarter of this year. Revenue per customer was 427,080 won ($294), up 6% over the same period.
The increase in both revenue and customers was influenced by the diversification of the product lineup. In October last year, Coupang launched the luxury beauty service RLUX, adding luxury beauty brands such as Kiehl's, Dolce & Gabbana, and Jo Malone to further diversify its offerings. In addition, popular brands such as Swarovski, Converse, Wedgwood, and Royal Copenhagen were also added to the regular Rocket Delivery lineup.
Regarding this, Kim stated, "With the expansion of our product assortment, the number of customers who purchased from more than nine categories this quarter increased by more than 25%, indicating active customer engagement," adding, "By investing in faster and more reliable delivery of a broader product range, we are seeing increased retail spending by customers, which in turn creates a virtuous cycle of further product expansion."
Meanwhile, Coupang explained that the high-tariff policy of the Donald Trump administration in the United States has had little impact. Chief Financial Officer Gaurav Anand said, "We have not been significantly affected by the recently announced tariffs on US imports, and there has been no notable change among our core consumer base due to global events. However, we are well aware that it is impossible to be completely unaffected by the current global situation, so we will closely monitor future changes in the macroeconomic environment," he added.
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