Coupang Achieves Record Quarterly Revenue of 11.9 Trillion KRW in Q2, Driven by Rapid Growth in Taiwan and Farfetch

Taiwan and Farfetch Business Units Achieve 33% Revenue Growth
Operating Profit and Net Income Turn Positive

Coupang Inc., the parent company of Coupang, achieved its highest-ever quarterly revenue as its core business continued to grow and its new businesses in Taiwan and Farfetch experienced rapid expansion. Operating profit reached 209.3 billion KRW, marking a turnaround into profitability.

Yonhap News

According to Coupang Inc. on August 6, revenue for the second quarter of this year was 11.9763 trillion KRW (8.524 billion USD, based on an average quarterly exchange rate of 1,405.02 KRW per USD), representing a 19% increase compared to the second quarter of last year (10.0357 trillion KRW). This figure is approximately 500 billion KRW (4.3%) higher than the previous record for quarterly revenue of 11.4876 trillion KRW set in the first quarter of this year.

Both operating profit and net profit turned positive. Operating profit was 209.3 billion KRW (149 million USD), a turnaround from an operating loss of 34.2 billion KRW last year. Last year, operating profit was negative due to the one-time reflection of a fine (168.2 billion KRW) imposed by the Fair Trade Commission, but this year, the significant increase in revenue led to a return to profitability. The operating profit margin was 1.7%. Net profit for the period was 43.5 billion KRW (31 million USD), also a turnaround from a net loss of 143.8 billion KRW in the second quarter of last year.

The main driver behind the improved performance was the growth business segment, which includes the results from Taiwan, Farfetch, and Coupang Eats. Revenue from the growth business segment was 1.6719 trillion KRW (1.19 billion USD), up 33% year-on-year. Compared to the previous record for the segment in the first quarter of this year (1.5078 trillion KRW, or 1.038 billion USD), this represents an 11% increase. However, EBITDA for the growth business segment was negative 330.1 billion KRW, with the deficit widening compared to last year (negative 274 billion KRW).

The product commerce segment, which includes Rocket Delivery, Rocket Fresh, Rocket Gross, and Marketplace businesses, also maintained double-digit growth. Revenue for this segment was 10.3044 trillion KRW (7.334 billion USD), a 17% increase year-on-year. The number of active customers?defined as those who purchased Coupang products at least once during the second quarter?was 23.9 million, a 10% increase compared to the same period last year (21.7 million).