Coupang Q1 Revenue Up 23%, Profit Hit by Farfetch Deal

Seoul, South Korea – South Korean e-commerce giant Coupang (NYSE: CPNG) reported first-quarter net revenues of $7.1 billion, representing a 23% increase year-on-year. 

The company's revenues exhibited a 28% growth on a constant currency basis.

The company observed a 36% increase in gross profit, amounting to $1.9 billion, and a 260-basis-point improvement in gross profit margin, reaching 27.1%.

However, net income attributable to Coupang stockholders declined to $5 million from $91 million a year earlier, mainly due to losses from acquiring fashion platform Farfetch.

The adjusted EBITDA was $281 million, representing a 3.9% margin, a 20 basis point decline from the previous year. 

If one were to exclude the impact of Farfetch, the adjusted EBITDA would have been $312 million with a 4.6% margin. 

The Product Commerce segment exhibited a 15% increase in revenue, reaching $6.5 billion.

Coupang has forecast that its developing offerings segment, including Farfetch and newer business lines such as food delivery and online video, will result in an adjusted EBITDA loss of approximately $750 million during the current year. 

Nevertheless, the company indicated that Farfetch was on course to achieve breakeven on a run-rate basis by the end of 2024.

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