Kurly sees first-ever operating profit as straight shot to listing

Industry

Published: 21 May. 2024, 18:53 Updated: 21 May. 2024, 19:09

Kurly sees first-ever operating profit as straight shot to listing

Kurly's logo. [MARKET KURLY]

Kurly, operator of the online grocery shopping and delivery service Market Kurly, logged its first-ever operating profit in the first quarter of the year, materializing a rosy outlook for a listing that could spiral into growth.

The company reported 525.7 million won ($390,000) in operating profit in the January-March period compared to a loss of 31 billion during the same period last year.

It's the company's first black ink since its establishment in 2015.

Revenue rose 6 percent to 538.1 billion won from a year earlier.

Kurly attributed the increase in its earnings to the reduction in transportation costs and diversifying revenue streams.

The costs, which comprise transportation and payment fees, came in at 63.8 billion won, down 6 percent from a year earlier. This reduction came on the heels of improved logistics efficiency. The company started operating two new logistics centers located in Changwon and Pyeongtaek last year.

The company also seeks to diversify its revenue streams to create profit.

It plans to make all-out investments to drive convenient shopping experiences and to discover new business opportunities.

"We were able to record our first operating profit this quarter thanks to profit diversification and structural improvement," a company official said.

Kurly also said it sees a Kospi listing as a prospective growth driver, although specific details including the time frame have not been determined yet.

"Kurly will closely consult with its IPO managers and seek a re-listing at a good timing," a spokesperson said.

The company attempted to go public back in 2021 but canceled, citing the global economic slowdown and weakening investor sentiment.

It was earlier valued with a potential market capitalization of around 4 trillion won, but that has fallen to some 2.9 trillion won.

BY CHOI HAE-JIN [choi.haejin@joongang.co.kr]