Seoul: U.S.-listed e-commerce giant Coupang Inc. announced a significant increase in its third-quarter net profit, which surged by 51 percent from the previous year. This growth was primarily fueled by strong performances in its product commerce and new business segments.
According to Yonhap News Agency, for the quarter ending September 30, Coupang's net profit rose to 131.6 billion won (approximately US$95 million), up from 86.9 billion won in the same period the previous year. The company also reported a 51.5 percent increase in operating profit, reaching 224.5 billion won from 148.1 billion won, while sales grew by 20 percent, totaling 12.84 trillion won compared to 10.69 trillion won a year earlier.
Coupang attributed its robust quarterly performance to the strong results of its core product commerce division, which includes its renowned Rocket Delivery service. Additionally, the company saw growth in its new business ventures, such as the luxury fashion platform Farfetch Holdings, operations in Taiwan, and the food delivery service Coupang Eats. The acquisition of British luxury retailer Farfetch in January 2024 has positioned Coupang as a key player in the substantial $400 billion global personal luxury goods market. Sales in its new growth businesses increased by 31 percent year-on-year, reaching 1.78 trillion won in the quarter.
Bom Kim, Coupang's founder and Chief Executive Officer, emphasized the company's strong performance during a conference call to discuss the earnings results. "Our results this quarter continue to demonstrate our conviction that Korea remains a remarkably durable growth opportunity with a largely untapped runway ahead," Kim stated. He also highlighted the potential for future growth by expanding Coupang's customer value proposition through a broader selection of both first-party and marketplace offerings.
Coupang's first-party business involves delivering goods directly from its logistics centers, while the marketplace segment allows customers to receive products from third-party sellers contracted with Coupang. Currently, first-party deliveries account for more than 90 percent of the company's sales.
Looking to the future, Kim expressed optimism about the ongoing sales momentum in Taiwan, which is expected to continue contributing positively to the company's earnings. "These levels of customer adoption in Taiwan are similar to those we saw at a comparable stage of building our retail business in Korea, reinforcing our confidence in its long-term potential," he remarked.