Developing Offerings Segment, Including Taiwan and Farfetch, Posts 31% Revenue Growth
Operating Profit and Net Income Up 50% Year-on-Year
Coupang Inc., the parent company of Coupang, achieved its highest-ever quarterly performance. The company’s global business drove these results, with the growth segment-including new businesses such as Rocket Delivery in Taiwan and Farfetch-posting rapid sales growth of 31%. Operating profit reached 224.5 billion won (162 million dollars), a 51.5% increase compared to the third quarter of last year.
According to Coupang Inc. on November 5, sales for the third quarter of this year amounted to 12.8455 trillion won (926.7 million dollars, based on an average quarterly exchange rate of 1,386.16 won per dollar), a 20% increase from the third quarter of last year (10.6901 trillion won). This figure is approximately 869.2 billion won (7.26%) higher than the previous record for highest quarterly sales, which was set in the second quarter at 11.9763 trillion won.
During this period, both operating profit and net income increased by more than 50% year-on-year. Third-quarter operating profit was 224.5 billion won (162 million dollars), up 51.5% from 148.1 billion won (109 million dollars) in the same period last year. This is similar to the first quarter of this year (223.7 billion won), and slightly higher than the second quarter (209.3 billion won), but significantly lower than the record 435.3 billion won posted in the fourth quarter of last year. The operating margin was 1.7%, a slight improvement from 1.38% a year earlier, but lower than the first quarter (1.9%) and the same as the second quarter (1.7%). Net income for the quarter was 131.6 billion won (95 million dollars), up 51% from 86.9 billion won (64 million dollars) in the same period last year.
The growth segment, which includes the results of businesses such as Taiwan, Farfetch, Coupang Play, and Coupang Eats, was the main driver behind the improved performance. Sales in the growth segment reached 1.7839 trillion won (1.287 billion dollars), up 31% year-on-year, thanks to the strong performance of global businesses like Rocket Delivery in Taiwan. However, due to expanded investments, EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the growth segment was negative 404.7 billion won, with the deficit widening by 134.6% compared to last year’s negative 172.5 billion won. The third-quarter loss in the growth segment increased by 23% compared to the second quarter of this year (330.1 billion won, or 235 million dollars).
The Product Commerce segment, which includes Rocket Delivery, Rocket Fresh, Rocket Growth, and Marketplace businesses, also posted double-digit growth. Sales in this segment were 11.0615 trillion won (7.98 billion dollars), an 18% increase from the same period last year. The number of active customers-those who purchased a Coupang product at least once in the third quarter-was 24.7 million, up 10% from 22.5 million a year earlier. Sales per customer in the Product Commerce segment were 447,730 won (323 dollars), a 7% increase year-on-year.
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