The South Korean e-commerce giant, listed on the New York Stock Exchange, posted 11.5 trillion won ($7.9 billion) in revenue for the January–March period, alongside a 340 percent jump in operating profit to 233.7 billion won. Net income reached 165.6 billion won, swinging back into the black from a 31.8 billion won loss in the same quarter last year. Operating margin improved to two percent from 0.6 percent a year ago, with earnings per share standing at $0.06.
In an earnings call, Coupang founder and chairman Kim Bom attributed the performance to long-term investment and operational discipline. “This consistent trend of achieving both solid growth and margin expansion is the result of years of investment and effort to provide the best customer experience by minimizing costs,” he said.
He also highlighted a shift in customer behavior, noting that the number of users purchasing from more than nine different product categories jumped by over 25 percent during the quarter.
Coupang’s core Product Commerce Division -- which includes its signature Rocket Delivery, Rocket Fresh, Rocket Grocery, and Marketplace services -- continued to drive the business. Revenue from this segment rose 16 percent to 9.98 trillion won, while the number of active customers grew nine percent year-on-year to 23.4 million. Revenue per customer also climbed six percent to 427,080 won.
Rocket Delivery and Rocket Fresh, which became household names during the pandemic, remain a staple for busy young professionals and families seeking next-day delivery for groceries and everyday essentials.
The company’s growth businesses, including operations in Taiwan, Farfetch, and food delivery service Coupang Eats, saw a 78 percent year-on-year revenue increase to 1.51 trillion won. Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortisation) losses in that segment narrowed slightly to 244 billion won. Kim pointed to notable progress in Taiwan, where product variety expanded nearly fivefold following the launch of the premium WOW membership program in March and the rollout of “Coupang Friends,” a local delivery workforce, in April.
Coupang also announced a share repurchase program worth up to 1.4 trillion won, nearly six times the size of its buyback initiative last year. “The share buyback is one of several tools we can use,” said CFO Gaurav Anand. “We believe it will allow us to create meaningful returns for shareholders by leveraging current market conditions.”
Anand added that the company has not been significantly impacted by newly announced tariffs on U.S. imports and has seen no major shifts in consumer behavior due to global geopolitical developments.
Copyright ⓒ Aju Press All rights reserved.
View more comments