Coupang posts record quarterly sales on online buying demand

Coupang Inc. headquarters in Seoul [Photo by Han Joo-hyung]

Coupang Inc., the largest e-commerce company in Korea, posted a record quarterly sales and third three-month profit helped by demand for online purchases in the first step for the company to achieve its first annual profit since it was founded in 2010.

Operating profit in the first quarter was $106.77 million, compared with a loss of $205.71 million a year ago, the company said Wednesday. This marks the third consecutive quarter for the New York Stock Exchange-listed company to post a profit. Sales reached a record $5.85 billion, up 13 percent on-year, and net profit reached $90.85 million in the first quarter, compared with a loss of $209.29 million a year ago.

“We are seeing results from our ceaseless efforts to provide a wide range of products, low prices and excellent services to customers,” said Bom Kim, the founder of Coupang. “We will continue to expand our membership benefits to make our Wow membership the best service on the planet.”

Analysts predict that Coupang may achieve its first-ever annual profit since its foundation in 2010 if the current trend continues. The company has suffered losses even after logging a profit in the third and fourth quarters last year.

Coupang’s free cash flow over the past 12 months recorded $451 million, according to the company. Thanks to the operational capabilities, the company has secured financial soundness to move forward into the future, said Gaurav Anand, chief financial officer at Coupang.

The company’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) stood at $240.91 million and profitability improved rapidly with the margin rising to 4.2 percent from minus 1.8 percent last year.

Adjusted EBITDA loss for its developing offerings segment, including Coupang Play, Coupang Eats and fintech services, was $47.45 million, narrowing from the previous year’s $93.74 million loss.

Coupang’s active customers exceeded 19 million, posting an on-year increase of 5 percent, with average spending per customer at $305, according to the company.