Kurly Achieves Record Quarterly Operating Profit of KRW 27.4 Billion in Q2... IPO Plans on Track

Sales up 27% to KRW 734.8 billion, operating profit surges 1,991%

Core businesses like food and beauty drive growth, new businesses such as Kurly N Mart expand

Kurly achieved its highest-ever quarterly operating profit and net income in the second quarter of this year. This was driven by the growth of its core food and beauty businesses, as well as improved profitability from the expansion of its commission-based businesses, such as third-party seller delivery products (3P) and fulfillment services.

On August 12, Kurly announced that its consolidated sales for the second quarter reached KRW 734.8 billion, a 27% increase compared to the same period last year. Operating profit stood at KRW 27.4 billion, up 1,991% from KRW 1.3 billion a year earlier. This marks the highest quarterly operating profit in Kurly's history. Furthermore, the company has maintained operating profit for six consecutive quarters since the first quarter of last year.

Kurly also posted its highest-ever quarterly net income, recording KRW 25.4 billion. The company has swung to profitability from a loss in the second quarter of last year and achieved net profits for two consecutive quarters. The company’s gross merchandise value (GMV) increased to KRW 1.0786 trillion, up 25.1% year-on-year.

The main factor contributing to the improvement in profitability was a significant reduction in cost of goods sold. Unlike the direct purchase and sale of products, the 3P model generates commission revenue from sellers. As the proportion of revenue from commissions increased, the burden of cost of goods sold decreased. Consequently, the gross profit margin for the second quarter climbed to 35.3%, up 1.5 percentage points from the same period last year.

Kurly’s core business also continued to grow. The transaction volume of Market Kurly increased by 25.7% year-on-year, boosted by higher sales of fresh foods and home meal replacements (HMR). In the case of Beauty Kurly, the transaction volume rose by 13.5%, driven by increased sales of luxury and indie brands. The 3P transaction volume, including fulfillment services (FBK), climbed by 32.1% compared to a year earlier, fueled by an expansion in fashion, kitchenware, and interior goods. Kurly N Mart also showed a steady increase in transaction volume.

Building on these results, Kurly is expected to accelerate its renewed push toward an initial public offering (IPO). Kim Jonghun, Chief Financial Officer (CFO) of Kurly, said, “We have demonstrated both external growth and solid internal performance, proving the company’s business growth and profitability. Based on the high growth of our core and new businesses, we will maximize corporate value and lay the optimal foundation for a successful IPO in the future.”

This content was produced with the assistance of AI translation services.