Coupang: Farfetch losses impact annual profit

E-commerce giant Coupang Inc. significantly increased its revenue in fiscal year 2024, driven in part by the acquisition of online luxury fashion platform Farfetch, completed at the end of January last year. However, substantial losses from the newly acquired business and other one-off charges negatively impacted the group's net profit.

According to a statement released on Tuesday, Coupang's revenue for the past year reached nearly 30.3 billion dollars. This represents a 24 percent increase (29 percent currency adjusted) compared to 2023.

Farfetch contributed nearly 1.66 billion dollars to total revenue since its consolidation. Excluding this contribution, the group's revenue grew by 17 percent (23 percent currency adjusted).

Coupang's profit, however, decreased considerably, as Farfetch incurred a net loss of 352 million dollars during the year. Coupled with other negative one-off factors impacting the results, the group's net profit attributable to shareholders fell by 89 percent year-over-year to 156 million dollars. Adjusted for special items and the Farfetch loss, net profit decreased by 12 percent to 407 million euros.