Kurly Posts Record Q1 Profit, Accelerates IPO Plans

Seoul, South Korea - Kurly reported a record first-quarter operating profit of KRW 24.2 billion (US$16.1 million), a 1,277% increase from a year earlier, driven by growth in its core divisions and improved logistics efficiency. 

The figure was 1.9 times the company's total operating profit for the previous year.

The company posted a net profit of KRW 20.3 billion (US$13.5 million) for the January-March period, its highest quarterly result since the company's founding. 

Revenue rose 28.4% year-on-year to KRW 745.7 billion (US$496.0 million).

Gross merchandise volume (GMV) increased 29% to KRW 1.089 trillion (US$724.5 million). 

That growth outpaced the 9.7% domestic online shopping growth average reported by the National Data Agency for the first quarter.

Kurly attributed the earnings improvement to business diversification and sustained volume. Food GMV grew 27.8%, while the Beauty Kurly segment recorded a 20.2% increase. 

Third-party logistics (3P) and Fulfillment by Kurly (FBK) services expanded 52.6%. GMV for the Kurly N Mart division in March increased roughly ninefold compared with September of the preceding year.

Logistics adjustments contributed to the profitability figures. 

Following the introduction of a midnight delivery service in February and operational modifications at fulfillment centers in Gimpo, Pyeongtaek, and Changwon, the first-quarter gross profit margin improved 0.8 percentage point year-on-year to 33.1%.

Separately, Kurly raised KRW 33.0 billion (US$21.9 million) on May 6 through a third-party allotment paid-in capital increase to Naver. 

The transaction valued the company at KRW 2.8 trillion (US$1.86 billion).