Kurly sharply boosted profitability in the second quarter this year, posting its biggest quarterly results on record. As the share of fee-based businesses such as seller-fulfilled products (3P) expanded, the cost structure improved, and core businesses including food and beauty continued to grow.
Kurly said on the 12th that its operating profit on a consolidation basis in the second quarter this year was tentatively tallied at 27.4 billion won. That was up 1,991% from a year earlier. Revenue was 734.8 billion won, up 27%. Net income also swung to a profit of 25.4 billion won from a loss of 3.3 billion won in the second quarter last year.
Accordingly, Kurly has maintained operating profit for six consecutive quarters since the first quarter last year. After turning profitable on an annual basis last year, the company is continuing its profit growth this year.
Profitability improved as fee-centered businesses such as 3P expanded. The company said the burden of cost of goods sold eased as the share of fee revenue increased compared with the model of purchasing and selling products directly. The gross margin in the second quarter was 35.3%, up 1.5 percentage points from a year earlier.
Top-line growth also continued. Total transaction value in the second quarter was 1.0786 trillion won, up 25.1% from a year earlier. Market Kurly, the food business, saw its transaction value rise 25.7%, and Beauty Kurly grew 13.5%. Transaction value for 3P, including fulfillment service (FBK), increased 32.1%, supporting overall growth.
Along with improved profitability, cash on hand also increased. At the end of the second quarter this year, Kurly's cash and cash equivalents were 372.9 billion won, up 73% from a year earlier and the highest on record.
Kurly plans to leverage the improved results to strengthen the foundation for pursuing an initial public offering (IPO). A Kurly official said, "By achieving both top-line expansion and solid internal growth, we have proven unrivaled business growth and profitability," adding, "We will maximize corporate value based on high growth in our core business and new businesses to establish the optimal foundation for a successful IPO going forward."