Coupang, the No. 1 e-commerce platform in Korea, recorded an operating loss of 640 billion won in the third quarter, marking its third consecutive quarter in the red. The cumulative operating loss for this year has reached the 1.8 trillion won range, approaching the level of operating profit earned over the past three years. Profitability deteriorated due to the Incheon logistics center fire and increased cost burdens.
According to a consolidated earnings report filed with the U.S. Securities and Exchange Commission (SEC) on the 4th (Korean time), Coupang recorded an operating loss of $450 million (642.3 billion won, based on an average exchange rate of 1,427.52 won) in the third quarter. Although the deficit narrowed compared to the previous quarter (835 billion won), the loss approached last year’s annual operating profit (679 billion won).
The cumulative operating loss for this year was tallied at 1.8318 trillion won, surpassing the record high annual operating loss of 1.7088 trillion won recorded in 2021. However, as "Talpang" users (those who canceled their Coupang paid memberships following the information leak incident at the end of last year) returned, third-quarter revenue increased by 11% year-on-year to 14.2209 trillion won.
Third-quarter results reflected loss costs of $248 million (354 billion won) stemming from the Incheon logistics center fire. Rising cost ratios and increased selling, general, and administrative expenses also pressured profitability. The cost ratio relative to third-quarter revenue rose to 74.3% from 70.6% in the same period last year. Selling and administrative expenses also increased by 17.7% over the same period. Total operating costs, combining cost of goods sold and selling, general, and administrative expenses, reached $10.412 billion (approximately 14.8633 trillion won), exceeding the scale of revenue.
Profitability in Product Commerce, its core business, deteriorated despite revenue growth. Revenue from Product Commerce, including Rocket Delivery, Rocket Fresh, Rocket Growth, and the Marketplace, increased by 5% to $8.374 billion (11.954 trillion won) from $7.98 billion in the same period last year. Revenue converted to Korean won rose by 8% compared to 11.0615 trillion won in the same period last year. Adjusted EBITDA fell by 45% to $385 million (549.5 billion won) from $750 million in the same period last year, and the adjusted EBITDA margin dropped by 4.24 percentage points to 4.6%.
Meanwhile, with additional fine sanctions from the Fair Trade Commission looming, Coupang is expected to record a loss in the fourth quarter as well.
in LIVING
