Racks up US$77.42mn in OP in Q3
Coupang succeeded in turning a profit in the third quarter of this year, the first profit in eight years since the e-commerce giant introduced a “rocket-speed” delivery service in 2014.
According to an earnings report submitted to the U.S. Securities and Exchange Commission (SEC) on Nov. 10, Coupang logged sales of 6.83 trillion won in the third quarter of 2022, a 27 percent increase from the same period of 2021. Its sales were the highest ever in Korean won-denominated terms.
Its sales in U.S. dollar terms stood at US$5.13 billion, up 10 percent from US$4.644.7 million last year. Its operating profits came in at US$77.42 million.
In detail, its sales in the commerce sector including the Rocket Delivery and Rocket Fresh Business Divisions, stood at US$4,947.17 million, up 28 percent from the same period of 2021. Its sales in new growth areas such as Coupang Eats hit US$154.16 million, down 6 percent year on year in U.S. dollar terms and up 10 percent in Korean won terms.
Of note is the fact that Coupang turned an operating profit for the first time. Coupang has registered operating losses of 250-500 billion won every quarter but has been confident that it will be able to cut down on its losses after the completion of its infrastructure investment.
Coupang posted an operating loss of US$67.14 million in the second quarter, a drop of 87 percent compared to the same period of the previous year, raising expectations for a turnaround.
Coupang's active customers in the third quarter totaled 17.99 million, up 7 percent from a year before, and sales per active customer stood at US$284, up 3 percent in U.S. dollar terms and 19 percent in Korean won terms.
“This achievement is the results of billions of U.S. dollars invested in a logistics network that integrates technology, fulfillment, and last miles,” CEO Kim Bom-seok said. “We will provide customers with products at reasonable prices while enriching their experiences by steadily investing in automation technologies including process optimization, machine learning and robotics.”