South Korean e-commerce giant Coupang Inc. widened its losses in the second quarter of the year even after recording double-digit growth in its top line, the company reported in a statement.
- Coupang’s net loss widened to $518.601 million from $102.050 million the same quarter in 2020, while the net loss per share fell to $0.30 from $5.81. Net revenue climbed 71% to 4.478 billion from $2.614 billion.
- Coupang attributed the loss in the second quarter to direct investments related to two of its new initiatives — grocery offering Rocket Fresh and food delivery offering Coupang Eats.
- Active customers climbed 26% to reach 17.022 million, up from 13.487 million in 2020. Revenue per active customer grew 36% year-on-year to $263 from $194.
- Gross profit for the quarter increased 50% to $658 million. Growth would have been 86% to a record $816 million if not for the fire that hit the fulfillment center in Deok Pyeong, Korea, in June.
Damages from the fire include $158 million in inventory losses, $127 million in property and equipment losses, and $11 million in other losses. The company is insured on property losses, but no recoveries have so far been recognized. CPNG is down 8.20% premarket.