Coupang's parent Coupang Inc. topped 14 trillion won in third-quarter revenue this year but swung to an operating loss of 642.3 billion won. The loss from the July fire at an Incheon logistics center was booked in the results, and the burden of cost of sales and selling and administrative expenses also grew.
In its third-quarter consolidated results report filed with the US Securities and Exchange Commission (SEC) on the 4th (Korea time), Coupang Inc. said revenue in the period was $9.962 billion (about 14.2209 trillion won). Compared with $9.267 billion a year earlier, that is a 7% increase in dollar terms, and in won terms an 11% increase from 12.8455 trillion won in the same period last year. The third-quarter average exchange rate of 1,427.52 won per dollar was used for the won conversion.
The operating loss of $450 million (about 642.3 billion won) reflects a reversal from an operating profit of $162 million (about 224.5 billion won) in the same period last year. Following 354.5 billion won in the first quarter and 835 billion won in the second, it is the third straight quarter of operating losses this year. Net income also swung from a profit of $95 million (about 131.6 billion won) in the same period last year to a loss of $501 million (about 715.1 billion won). The net loss is likewise the third in a row, including 389.7 billion won in the first quarter and 856 billion won in the second, and the loss per share was $0.28.
The fire's impact was significant. The company said fire-related costs of $248 million (about 354 billion won) went into the third-quarter operating loss and net loss, and that excluding them the operating loss would have been about $202 million (about 288.3 billion won) and the net loss about $321 million (about 458.2 billion won). When it released second-quarter results, Coupang Inc. estimated the fire loss at about $246 million, adding the book value of inventory and fixed assets in the facility and payment obligations for sellers' inventory, and said it would reflect it from the third quarter.
The cost structure also worsened. Cost of sales was $7.401 billion, or 74.3% of revenue, up 3.7 percentage points from 70.6% a year earlier. Selling, general and administrative (OG&A) expenses were $3.011 billion, up 17.7% from $2.558 billion a year earlier. Total operating costs of $10.412 billion exceeded revenue, and gross profit fell 6% to $2.561 billion. Adjusted EBITDA (operating profit before depreciation and amortization) was $116 million, down 72% from $413 million in the same period last year.
The core Product Commerce segment slowed in growth. Revenue in this segment, which includes Rocket Delivery, Rocket Fresh, Rocket Growth and Marketplace, was $8.374 billion (about 11.954 trillion won), up 5% in dollars and 8% in won. Segment adjusted EBITDA was $385 million (about 549.5 billion won), down 45% from $705 million a year earlier, and the margin fell 4.24 percentage points to 4.6%.
Active customers were 25.2 million, 2% more than 24.7 million a year earlier and up 500,000 from the previous quarter. Revenue per customer was $332 (about 473,930 won), up 6% from $323 (about 447,730 won) in the same period last year.
The Growth Initiatives segment, comprising Taiwan Rocket Delivery, Farfetch and Coupang Eats, posted revenue of $1.588 billion (about 2.2669 trillion won), up 23% from $1.287 billion in the same period last year. At constant exchange rates, the growth rate is 27%. However, the adjusted EBITDA loss of $269 million (about 384 billion won) was only slightly smaller than $292 million a year earlier, and investment losses continued.
Coupang Inc. added that during the third quarter it repurchased 12.7 million Class A common shares for about $201 million.