$CPNG (+0,94 %)

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.

https://koreajoongangdaily.joins.com/news/2025-05-07/business/industry/Coupang-posts-record-Q1-sales-boosted-by-FX-rates-and-new-ventures/2301578

The conference call on the quarterly results of Coupang ($CPNG (+0,94 %) ) showed impressively how the company is further expanding its further expanding its leading position in e-commerce. CEO Bom Kim started the year with an impressive sales increase of almost 6 billion US dollars - a growth of 23 % on a currency-adjusted basis.

Particularly pleasing was the increase in gross profit of 29 %. The company generated an adjusted EBITDA of 1.4 billion US dollarswith a margin of 4,5 % and a free cash flow of over 1 billion US dollars.

Coupang continues to do everything in its power to the best customer experience at the lowest at the lowest price. Through strategic innovations in the logistics and fulfillment infrastructure the company was able to increase same-day and dawn delivery capacities by 45%. Customers also benefit from extended order lead times for same-day deliverieswhile the range of Rocket Delivery new services such as the installation of large appliances, furniture, electronics and car tires. tires.

The fresh produce range was also expanded by 30 % - a niche with enormous potential, particularly thanks to the free same-day and dawn delivery model. Particularly exciting: Jeju Island is now supplied overnight with Rocket Delivery - an important milestone in expanding the delivery service to all regions.

At the same time, the increase in efficiency in logistics has a direct impact on profitability. Thanks to the optimization of the supply chain has reduced line haul costs by 16 %while the automation of the fulfillment processes almost doubled. was almost doubled. And there is still further potential here: the The degree of automation remains in the low double-digit rangewhich should lead to additional margin improvements in the medium term.

International expansion continues to gain in importance for Coupang. Taiwan remains the most important test market outside Koreaand the growth figures confirm the success. In the fourth quarter quarter, sales there rose by 23 % compared to the previous quarterlargely due to organic growth. In addition, the WOW membership program was introduced in Taiwan, successfully replicating Coupang's proven model from Korea.

Another major topic was the acquisition of Farfetchwhich was completed at the beginning of 2024. The company had previously struggled with with high losses and declining growth ratesbut Coupang has implemented significant operational implemented significant operational improvements. Farfetch is now operating at a break-even run rateand the platform still has 49 million monthly visitors in over 190 countries.

For the coming year, Coupang sees enormous potential in the further further scaling of high-margin business areas. The automation of fulfillment processes will be driven forward in order to further optimize the supply chain. further optimize the supply chain and improve the cost structure. In addition, the product range is being first-party and third-party offerings which not only strengthens the not only strengthens the customer offering, but also drives sales growth.

Coupang anticipates currency-adjusted sales growth of 20 % .. Particularly pleasing: the gross profit growth in the Product Commerce segment is expected to exceed sales growthwhich points to a further margin improvement which points to a further improvement in margins.

In the Developing Offerings Coupang expects an adjusted EBITDA loss of between 650 and 750 million US dollarswhich shows that the company is continuing to invest heavily here in order to expand new business areas.

In the subsequent Q&A part of the conference call, several key questions were raised.

Stanley Yang (JPMorgan) asked about the possible slowdown in the e-commerce market and its impact on Coupang. CEO Bom Kim explainedthat Coupang continues to grow strongly despite the macroeconomic uncertainties. continues to grow stronglyas the company only has a small small share of the overall retail market and market share through continuous optimization of service, selection and price. can continue to gain market share.

Eric Cha (Goldman Sachs) wanted to know the benefits of the technology investments. CFO Anand made it clear that the focus is on machine learning and generative AI to improve the customer experience and optimize operational processes.

Seyon Park (Morgan Stanley) was interested in the strategy following the restructuring of Farfetch. Bom Kim emphasized that operational efficiency has already been significantly increased and that the company is now focusing on profitability and sustainable growth.

The results of the conference call made it clear that Coupang remains on course for growth. The company is making targeted investments in technology, automation and new marketsto improve margins and exploit long-term market opportunities..

Uber Eats currently holds a 70 percent share of the Japanese food delivery market.

$CPNG (+0,94 %)
$UBER (+0,03 %)

Coupang Eats, a food delivery platform from Coupang, has launched a pilot food delivery service in Tokyo. It is the company's first service launch abroad.

The pilot service called Rocket Now began operating in Tokyo's Minato district on January 14, according to industry sources.

The latest foray into Japan could be the next big breakthrough for Coupang, which is looking to expand its global presence.

This is Coupang's second attempt to establish a presence in the Japanese market.

The e-commerce platform had previously launched Coupang Japan in 2021, a quick-commerce service that delivered groceries and daily necessities to select Tokyo neighborhoods, but pulled out in 2023.

This time, the company is focusing on grocery delivery, which generally requires less initial investment than e-commerce services that rely on large logistics centers.

Industry observers are eager to see whether Coupang can gain a foothold this time, especially without WOW membership, which has been a growth driver for its domestic business.

WOW membership includes benefits such as free delivery and returns, free delivery of Coupang Eats and access to the Coupang Play streaming platform in Korea.

Coupang Eats grew in Korea after it introduced free delivery for WOW members in March 2023. According to MobileIndex data, Coupang Eats recorded 9.63 million monthly active users in December 2024, an increase of 72.1 percent year-on-year.

The Japanese food delivery market has grown in recent years. Grand View Research predicted that the market would grow by 8.4 percent annually and reach USD 35.45 billion in 2030, up from USD 22.62 billion in 2022.

Woowa Brothers, the operator of online delivery platform Baedal Minjok, entered the Japanese market twice, in 2014 and 2020, with both efforts ending in withdrawal within a year.

https://koreajoongangdaily.joins.com/news/2025-01-21/business/industry/Coupang-Eats-launches-first-overseas-delivery-service-in-Tokyo/2226848

$JMIA (+6,09 %) - Company presentation (difficult market/great potential):

$JMIA (+6,09 %) is an online trading company operating in Africa. The company offers a wide range of products such as electronic goods and fashion.

It offers payment, food delivery, credit and flight booking services.

They stand out in the African e-commerce landscape. Their innovative platform is revolutionizing traditional retail by offering a diverse range of products and services online that are tailored to the specific needs of the African market. The company's integrated payment system, JumiaPay, enhances the customer experience through a seamless, secure transaction process. Jumia's logistics network, designed to overcome regional challenges, ensures efficient delivery, strengthening the company's position as a leader in African e-commerce.

$JMIA (+6,09 %) was founded in Lagos Nigeria in 2012 by two former management consultants Jeremy Hodara and Sacha Poignonnec.

$JMIA (+6,09 %) is active in 11 African countries: Nigeria, Egypt, Morocco, Kenya, Ivory Coast, South Africa, Tunisia, Algeria, Ghana, Senegal, Uganda

$JMIA (+6,09 %) Logistics enables the convenient and reliable delivery of goods. It consists of a large network of rented warehouses, pick-up stations for consumers and drop-off points for sellers, as well as more than 400 local external logistics service providers. Their logistics partners and facilities are seamlessly integrated and managed through their proprietary technology, data and processes.

$JMIA (+6,09 %) is taxable in Berlin, the development team is based in Portugal and the actual headquarters are in Dublin .

For this reason, and because the nationality of the two CEOs is French, there are various doubts that $JMIA (+6,09 %) is an African company, as is claimed in the self-promotion.

• In March 2016, the company managed to raise 50 million euros in venture capital
• As Africa's first "unicorn", the technology start-up reached a valuation of over 1 billion US dollars
• In April 2019, the company made its stock market debut on the New York Stock Exchange, raising capital of USD 196 million
• Jumia's share price initially tripled within the first three days of trading before settling back around the initial price a month later
• Among other things, the share price was negatively affected by the allegation made by the US portal Citron Research that Jumia had reported false key figures prior to the IPO.

Arguments for $JMIA (potential/giant market opportunities):

• Africa's e-commerce penetration is only ~5%, compared to over 20% globally, suggesting huge upside potential
• Africa's population is projected to account for 25% of the world's population by 2050 (a huge untapped consumer base)
• With an average age of 19.7 years - a young, digitally savvy consumer base.
• Internet penetration is growing rapidly and is expected to reach 65% by 2030, driven by affordable smartphones and growing infrastructure.
• $JMIA (+6,09 %) is active in 11 major African markets and covers over 70% of the continent's GDP and internet users.
• Market leader in logistics: $JMIA (+6,09 %) Processed 5.6 million parcels on Black Friday and has a delivery infrastructure that covers urban and rural areas
• Fintech expansion: JumiaPay increased transactions by 40% year-on-year, creating opportunities in Africa's underserved regions with banking services
• Financial upside and synergies: Jumia's market capitalization is USD 554 million, the company trades at only about double its revenue
• 1.7 billion Africans will join the consumer economy by 2030, driving demand for e-commerce
• Strong growth figures: GMV (Gross Merchandise Volume) +33% YoY (currency adjusted) showing robust demand.
• Orders +18 % YoY, driven by the success of Black Friday.
• Growth in the interior of Nigeria: +44 % YoY,
• Solid financial position: USD 164.6m in cash reserves - ample liquidity for future investments. Operating losses are falling every quarter, demonstrating cost discipline and efficiency gains.
• Attractive valuation: Trades at ~2x sales and 1.7x EV/sales, well below peers in high-growth markets. Market capitalization of USD 554m positions Jumia as a small-cap with significant upside potential.
• Strategic implementation: Focus on domestic expansion, procurement efficiency and adaptation to local markets. Utilization of logistical capacities: 5.6 million parcels were handled during the Black Friday season (+24% year-on-year).
• Long-term potential: Positioned as Africa's leading e-commerce platform. Benefits from improved infrastructure, increasing internet penetration and growing consumer acceptance.
• The African e-commerce market is expected to grow exponentially from USD 30 billion in 2024 to over USD 75 billion in 2030.

The anxiety around Jumia often revolves around a single question: what happens when giants like $AMZN (-0,1 %) , $BABA (-2,43 %) or $PDD (-1,39 %) decide to enter the African market?

At first glance, this is a legitimate concern. But this perspective overlooks the essence of e-commerce success in Africa. It's not about flashy apps or sprawling warehouses in cities - it's about solving the logistical puzzle. And that's where Jumia's advantage lies. Africa's logistical challenges are unprecedented. In many regions, physical addresses are not a given, but a rarity, making deliveries difficult and turning traditional e-commerce models on their head.

$JMIA (+6,09 %) operates in an environment where customers often live miles away from hubs and there are no traditional delivery points. This is where Jumia has built its moat. It's more than an e-commerce platform, it's a logistics powerhouse designed to tackle the complexities of the continent. It's not just about delivering parcels. Jumia's network connects remote and rural regions that global competitors may not be able to serve. Take Nigeria, for example. With a population of over 200 million, the consumer base extends far beyond the urban centers of Lagos. Selling products is one thing, reaching underserved regions with sparse infrastructure is another and this is where $JMIA (+6,09 %) strength.

The logistics system is not easily replicated and is a barrier to entry that global giants must reckon with. International players eyeing Africa have a difficult choice: invest billions in building a comparable infrastructure or partner with $JMIA (+6,09 %) whose network has already proven itself in markets such as Ghana, Kenya and the Ivory Coast. In either case $JMIA (+6,09 %) benefit from this. The company is the natural ally - or rival - for any e-commerce player trying to gain a foothold in Africa. And $JMIA (+6,09 %) is constantly improving its market position and is not satisfied. Operational improvements are further consolidating its position. Consolidating smaller warehouses into larger, technology-enabled facilities and optimizing fulfillment centers in core markets such as Nigeria and Ghana reduces $JMIA (+6,09 %) inefficiencies. These changes not only reduce costs, but also create scalability, allowing the company to expand deeper into untapped regions where there is little competition.

Of course, the macroeconomic backdrop is tough. Currency devaluations and volatile markets weigh heavily on $JMIA (+6,09 %) 's operating environment. But its logistics network remains an irreplaceable asset that global competitors struggle to replicate, even with significant investment. A current outstanding key figure underlines this: Over 50% of orders from $JMIA (+6,09 %) now come from outside the major cities, a testament to its reach and resilience.

Western companies often dream of penetrating African markets, but constantly fail. Deciphering the African logistics code has proved too complex, and currency risks are driving many to retreat. Meanwhile $JMIA (+6,09 %) is flourishing. It is adapting to challenges that others consider insurmountable and consolidating its leadership position.

Can competitors catch up? A question that is often asked ?

At the moment, they can't really. Jumia's logistics network is more than an operational tool, it's a fortress. This system, built to withstand Africa's unique challenges, is the foundation of its success. It is also the core of its strategy, the playbook of $AMZN (-0,1 %) , $MELI (+1,83 %) , $BABA (-2,43 %) to follow.

Building a strong logistics network to create lasting barriers to market entry. The latest Black Friday results (as briefly outlined above) underline this potential. Orders increased by 18 % year-on-year, while GMV (Gross Merchandise Volume) grew by an impressive 33 % in constant currency.

However, significant currency devaluations in key markets such as Nigeria and Egypt dampened reported GMV growth to just 2%. Despite these headwinds, Jumia's underlying business demonstrates its ability to weather macroeconomic storms. The customer retention metrics speak for themselves. The total number of customers rose by 9% and orders increased by 18%.

A 44% increase in physical goods orders from regions outside Nigeria's major cities. This expansion into the interior of the country underlines the untapped potential that Jumia is beginning to develop.

The switch to an asset-light model is also paying off. Jumia Logistics recorded a 24% increase in parcel volumes, underlining the efficiency of its operations. On the supply side, international procurement is booming. The number of items from global sellers has risen by 31 %.

This diversifies the platform's offering to meet growing consumer demand. This diversification is critical to cementing Jumia's role in Africa's dynamic e-commerce landscape. And yet the market has not caught up. Despite this progress, Jumia's valuation is still not dependent on the dynamics of its core business.

Continued improvements in logistics, geographic expansion and customer acquisition could provide the basis for significant upside potential

However, the way forward will not be easy. Currency fluctuations in key markets and dependence on cash reserves pose risks. But Jumia offers a rare opportunity to enter one of the fastest growing e-commerce markets in the world. $JMIA (+6,09 %) is far from over - it is just beginning.

Earnings highlights for the third quarter of 2024:

- Revenue of $36.4 million, down 13% YoY, or up 9% in constant currency

- GMV of $162.9 million, down 1% YoY, or up 29% in constant currency

- Operating loss of $20.1 million compared to $18.3 million in the third quarter of 2023, up 10% YoY, and up 6% in constant currency

- Adjusted EBITDA loss of $17.0 million compared to $14.8 million in the third quarter of 2023, up 15% YoY, and up 10% in constant currency

- Loss before income tax from continuing operations of $17.8 million in the third quarter of 2024, down 17% YoY or down 2% in constant currency

- Liquidity position of $164.6 million, an increase of $71.8 million in the third quarter of 2024, that includes the net proceeds from the August 2024 At-the-Market (ATM) offering, compared to a decrease of $19.0 million in the third quarter of 2023

- Net cash flows used in operating activities of $26.8 million compared to $24.0 million in the third quarter of 2023

• Summary and personal opinion: $JMIA (+6,09 %) Blend of market leadership, operational improvements and growth in untapped regions, positions the company for exponential growth. At current levels, it could be a rewarding, very long-term investment in one of the most promising markets in the world, even if the environment is very challenging and the investment naturally carries a lot of risk. A takeover by a major player such as $AMZN (-0,1 %) , $MELI (+1,83 %) , $BABA (-2,43 %) could also be possible, as setting up your own logistics is very difficult and costly. ✌️

$AMZN (-0,1 %) , $MELI (+1,83 %)
$BABA (-2,43 %) , $SE (-0,53 %) , $PDD (-1,39 %) , $JD (-1,3 %) , $9618 (-1,63 %) , $9988 (-3,29 %) , $CPNG (+0,94 %) , $EBAY (+0,45 %)

$CPNG (+0,94 %)
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South Korea's president declares martial law - parliament sealed off

In the midst of a budget dispute with the opposition, South Korea's President Yoon has declared martial law - ostensibly to protect "state order". Protests erupt in front of parliament and police cordon off the building.

https://www.spiegel.de/ausland/suedkorea-praesident-yoon-suk-yeol-ruft-kriegsrecht-aus-a-bf47eddf-6f8c-4856-a33e-68655c5eb595

Coupang launches Rocket Pet Doctor 2.0 with personalized pet nutrition. $CPNG (+0,94 %)

Coupang Inc, South Korea's largest e-commerce platform, announced Wednesday that it has launched "Rocket Pet Doctor 2.0," an enhanced personalized pet nutrition service, as part of its strategy to tap into the growing premium pet care market.

Rocket Pet Doctor provides pet owners with individualized food recommendations based on veterinary and nutritional science.

Customers enter their pet's profile - such as age, weight and medical history - into the system and vets provide a detailed health report and food suggestion within 10 minutes.

Rocket Pet Doctor was first launched in May 2023 and has already attracted hundreds of thousands of users.

The enhanced version improves health surveys and includes pre-checks for disease-specific diets, functional foods for joint and eye health, and improved palatability for picky eaters.

Coupang has also added more veterinarians specializing in nutrition to its platform and expanded its integrated pet food brands from 9 to over 40, increasing consumer choice.

Rocket Pet Doctor is available for free in the Pet Supplies category in the Coupang app.

https://www.kedglobal.com/e-commerce/newsView/ked202411130005