The e-commerce giant Coupang announced on Wednesday that it had achieved record sales in the first quarter. This was due to favorable exchange rates and the growth of its emerging business areas.
Coupang's revenue in the period from January to March amounted to 7.91 billion US dollars, an increase of eleven percent year-on-year (as reported) and 21 percent (adjusted for currency effects), the company said in a statement.
Sales were 120 million dollars below the market forecast of 8.03 billion dollars.
Operating profit more than tripled to 154 million dollars, while net profit was 114 million dollars, up from a loss in the same period last year.
The New York Stock Exchange-listed company attributed its improved profits to favorable exchange rate conditions and an upswing in the company's new business areas.
The combined sales of the Taiwanese delivery service Rocket Delivery, Coupang Eats and the recently acquired online fashion retailer Farfetch rose by 78 percent year-on-year to 1 billion dollars.
The revenue of Coupang's core Product Commerce division, which includes the Rocket Delivery and Rocket Fresh services, increased by 16 percent year-on-year to 9.98 trillion won (7 billion dollars). The number of active customers in this division rose by 9 percent to 23.4 million.
Coupang also announced that its board has approved a share buyback program worth up to 1.4 trillion won in common shares, describing it as part of a long-term strategy to create value for shareholders.
The company reported earnings per share of 0.06 US dollars, missing the forecast of 0.07 US dollars.
The company will continue to invest and expand its presence in Taiwan and expects continued growth of its food delivery service Coupang Eats, Coupang CEO Bom Kim said in a conference call on Coupang's outlook.
"We see tremendous potential [in Taiwan] to deliver the same mind-blowing wow experiences that have resonated so well with consumers in Korea," he said.
