Mesh Korea Reports 111 Billion KRW in Q3 Sales This Year...Improved Deficit Margin

Q3 Operating Loss Decreases by 2.6 Billion KRW from Previous Quarter... Profit Turnaround in Early Next Year Becomes Visible

[Asia Economy Reporter Kim Cheol-hyun] Mesh Korea, the operator of 'Boorung,' has improved its performance in the third quarter of this year. Sales increased, and the deficit was reduced through the downsizing of loss-making businesses and the expansion of real-time delivery.

Mesh Korea announced on the 4th that its sales in the third quarter of this year reached 111 billion KRW, an increase of about 11% compared to the previous record high of 100.2 billion KRW in the second quarter. The cumulative sales up to the third quarter amounted to 304.1 billion KRW, surpassing last year's annual sales of 303.9 billion KRW. Based on the current trend, it is expected to achieve sales of over 400 billion KRW this year.

Mesh Korea's record performance in the third quarter was driven by its motorcycle delivery business (real-time delivery). The motorcycle delivery business, which accounts for 80-90% of Mesh Korea's total sales, saw sales increase by about 11% compared to the second quarter. Operating profit during the same period also increased by 136% compared to the previous quarter.

The scale of operating losses is also rapidly improving. The operating loss in the third quarter was 13 billion KRW, down about 2.6 billion KRW from 15.6 billion KRW in the second quarter. Since July, Mesh Korea has been making strong efforts to improve its structure, aiming to turn a profit in the first half of next year by withdrawing from loss-making businesses such as dawn delivery and food ingredient distribution, and implementing voluntary retirement. Mesh Korea expects that if the fulfillment business is further streamlined in the fourth quarter, operating losses will decrease by 30-40% compared to the third quarter.

Yoo Jung-beom, Chairman of Mesh Korea, said, "The Boorung brand, representing domestic motorcycle delivery, and the self-sustainability of the motorcycle delivery business remain strong," adding, "Since we have reorganized by eliminating loss-making businesses and restructuring into a solid business structure centered on motorcycle delivery, it will be possible to achieve profitability around June next year."

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