Coupang Reports 27% Decline in Q3 Net Profit Due to Increased Facility Investments.

Seoul: South Korean e-commerce giant Coupang, Inc. announced that its third-quarter net profit fell by 27 percent compared to the previous year, as a result of increased investments in its facilities. Net profit for the quarter ending in September dropped to 86.9 billion won (US$64 million) from 119.6 billion won in the same period last year, according to the company's statement.According to Yonhap News Agency, Coupang's statement highlighted that the substantial investments in logistics infrastructure, amounting to over 520 billion won, significantly impacted the quarterly results. However, the company reported a 29 percent increase in operating profit, reaching 148.1 billion won in the third quarter, up from 114.6 billion won the previous year. Sales soared by 32 percent to 10.69 trillion won from 8.1 trillion won, marking the highest quarterly sales figure.The growth in operating profit was supported by new business categories such as Fulfillment and Logistics by Coupang (FLC) and R.Lux, a luxury offer ing. The FLC service enables Coupang to manage storage, inventories, and deliveries for small partner companies. Coupang Chief Financial Officer Gaurav Anand noted the achievement of nearly break-even profitability in Farfetch, a milestone reached earlier than planned.Sales in Coupang's Developing Offerings segment, which includes growth companies such as Coupang Eats and Coupang Play, more than quadrupled to 1.32 trillion won in the third quarter, compared to 285 billion won a year ago. Coupang had acquired the British online luxury fashion retailer Farfetch Holdings in January, securing a prominent position in the $400 billion global personal luxury goods market.For the period from January to September, Coupang reported a net loss of 88.7 billion won, shifting from a net profit of 426.4 billion won in the same period last year, amid increasing competition from Chinese rivals. Operating profit for the first nine months plummeted by 62 percent to 167 billion won from 444.8 billion won a year earlier.Cou pang continues to face fierce competition from Chinese e-commerce platforms, including PDD Holdings' Temu and Alibaba Group's AliExpress, which are attracting customers with aggressive marketing strategies. In response, Coupang plans to invest 3 trillion won over the next three years to expand its Rocket Delivery service nationwide, aiming to solidify its leading position in the competitive local delivery market.