Coupang Inc., South Korea’s leading delivery service provider, on Wednesday posted an all-time high quarterly profit and revenue, driven by its flagship Rocket Delivery service.
The New York Stock Exchange-listed company said it logged a record $5.8 billion in sales in the second quarter, up 16% from a year earlier.
It swung to a net profit of $145.2 million from a net loss of $75.5 million. On an operating level, it also turned to the black by posting a profit of $148 million.
On a year-on-year basis, the company posted a profit for a fourth straight quarter.
On a yearly basis, the company posted net losses of $1.5 billion in 2021 and $92 million in 2022. Coupang founder and CEO Bom Kim Coupang has been struggling due to heavy costs related to the Rocket Delivery service, introduced in 2014, which is offered to paid members and those who buy at least 19,800 won ($15) worth of products through Coupang in one order.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) stood at $300.2 million in the second quarter. Its EBITDA margin, or operating profit as a percentage of revenue, was 5.1%, up from 42% in the first quarter.
Revenue from its product commerce division increased 16% year on year to $5.7 billion.
Sales of new businesses, including the food delivery service Coupang Eats and the video streaming service Coupang Play, as well as the fintech business, fell 2% to $156.3 million.
