Coupang swings to a quarterly loss after warehouse fire
Coupang reported a third-quarter net loss as costs from its Incheon warehouse fire weighed on earnings. Revenue increased, but the company also recorded an operating loss after excluding the fire’s effects. Its core commerce business gained active customers, while the developing offerings segment continued to lose money on an adjusted basis. Trailing twelve-month free cash flow was negative.
Economics & Markets··Midday
Fire costs accompany a return to loss
Coupang, the online retailer with major operations in South Korea, swung to a third-quarter net loss following costs linked to its warehouse fire.[1], [2]
The company reported revenue of 9,962 million dollars, up from 9,267 million dollars a year earlier. Its operating loss reached 450 million dollars and the net loss attributable to shareholders was 501 million dollars. July’s fire significantly damaged a leased fulfilment centre in Incheon, South Korea. Coupang separately disclosed results excluding the fire’s effects.[1]
Commerce customers increase
The core commerce segment’s active customer count rose 2 per cent to 25.2 million. That business generated approximately 8.4 billion dollars in revenue, an increase of 5 per cent, and adjusted segment earnings of 385 million dollars. Developing offerings brought in approximately 1.6 billion dollars, up 23 per cent, while recording an adjusted segment loss of 269 million dollars.[1]
Loss persists after fire adjustment
Excluding fire effects, the operating loss was 202 million dollars and the shareholder net loss was 321 million dollars. These adjusted figures use a different expense boundary from the reported results. Over the trailing twelve months, operating cash flow fell to 845 million dollars and free cash flow was negative 409 million dollars. Cash and equivalents stood at 5,444 million dollars at September’s end.[1]
