Coupang Achieved Over 50% Growth for 15 Consecutive Quarters but...

Coupang Q2 Earnings Announcement... Sales Surpass 5 Trillion Won 'Record High'
Aggressive Investment and Logistics Center Fire Increase Deficit
"Supporting Local Economy and Small Businesses... Creating 5,000 Jobs"

[Image source=Yonhap News]

Coupang achieved its highest-ever sales (approximately 5 trillion KRW) in the second quarter of this year, but its operating loss also increased more than fivefold compared to last year, widening the deficit. Although this is a one-time loss that will be compensated once fire insurance proceeds are recovered, the loss from the fire at the Deokpyeong logistics center amounted to 340 billion KRW.

Coupang, which was listed on the New York Stock Exchange in March, announced on the 12th that its sales in the second quarter of this year reached $4.478 billion (approximately 5.17 trillion KRW), a 71% increase compared to the same period last year. This is the first time Coupang's quarterly sales have exceeded 5 trillion KRW, with $4.206 billion (approximately 4.7 trillion KRW) recorded in the first quarter of this year. Coupang stated, "We have grown more than 50% year-over-year for 15 consecutive quarters."

Coupang explained that profitability is also expanding in new businesses such as the fresh food delivery service 'Rocket Fresh' and the food delivery service 'Coupang Eats.' Rocket Fresh recorded sales of $2 billion (approximately 2.3 trillion KRW), a 100% increase compared to the same period last year. Coupang Eats' sales tripled over the previous two quarters, and loss per order decreased by more than 50% year-over-year. The number of active customers who made at least one purchase in the second quarter was 17 million, a 26% increase, and the purchase amount per person was $263 (approximately 304,000 KRW), up 36%.

[Image source=Yonhap News]

Despite sustaining high growth, the scale of losses also expanded. The operating loss in the second quarter was $515 million (approximately 600 billion KRW), more than five times the $95.22 million recorded in the same period last year. The net loss in the second quarter also sharply increased to $519 million (approximately 600 billion KRW) from $102 million in the same period last year. Notably, a loss of $296 million (approximately 340 billion KRW) from the Deokpyeong logistics center fire incident in June was reflected. Last year, Coupang's capital erosion ratio was reported to be over 50%, and it has been posting losses every year due to aggressive investments for business expansion.

In a press release on the same day, Coupang stated that it has contributed to the local economy, supported small business owners, and created jobs in Korea. Coupang said, "We invested $350 million this year to support small business owners in cooperation with the government and local governments," adding, "This is part of our commitment to use the funds raised through the U.S. stock market listing to support the Korean economy." It also noted that the sales of small business owners trading with Coupang grew by 87% in the second quarter compared to the same period last year, contrasting with a 7% decline in overall offline sales of small business owners nationwide.

Coupang explained that it created more than 5,000 jobs in the first half of this year, added over 600 safety-related employees since COVID-19, and invested more than $200 million in worker safety management.

This content was produced with the assistance of AI translation services.