Kurly posts record quarterly operating profit, eyes IPO

Kurly posted an operating profit of 27.4 billion won ($19.4 million) in the second quarter, a 1,991 percent jump from the same period a year ago and the highest quarterly figure in the company's history.

According to the Financial Supervisory Service's DART system on Wednesday, Kurly recorded consolidated sales of 732.7 billion won in the second quarter, up 27 percent year-on-year. Net profit for the period swung to a 25.4 billion won surplus from a 3.3 billion won deficit a year earlier.

Improved cost of sales was a major driver of the profitability gains. As commission-based revenue from third-party seller-fulfilled products (3P) grew as a share of total sales, the gross profit margin rose 1.5 percentage points year-on-year to 35.3 percent in the second quarter. Gross merchandise volume for the same period climbed 25.1 percent to 1.08 trillion won.

Transaction volume at Market Kurly, the company's core business, rose 25.7 percent year-on-year, driven by stronger sales of fresh produce and home meal replacement products. Beauty Kurly also saw transaction volume grow 13.5 percent, buoyed by demand for luxury and indie brands.

New businesses continued to expand. Third-party transaction volume, including the FBK fulfillment service, grew 32.1 percent over the year, supported by a broader product lineup spanning fashion, kitchenware and home furnishings, as well as FBK's growing competitiveness. Transaction volume at Kurly N Mart also increased consistently.

The profitability improvement pushed cash and cash equivalents to a record high as well. Liquid assets in the second quarter reached 372.9 billion won, up 73 percent from a year earlier.

"We will maximize corporate value on the back of strong growth in our core and new businesses, and build the best possible foundation for a successful IPO going forward," said Kim Jong-hun, Kurly's chief financial officer.