As the decline widened, Coupang shares fell 12% in after-hours trading

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Coupang update

The shares of SoftBank-backed e-commerce group Coupang plummeted in after-hours trading as the company reported wider quarterly losses after a fire destroyed the company’s largest logistics center in South Korea.

Coupang’s shares on the New York Stock Exchange fell 12% to $32.63, the lowest point since May.The stock price has fallen by nearly half Opening price Coupang had an initial public offering of US$4.6 billion in March, which was the largest international listing in the United States since the Chinese Internet group Alibaba raised US$25 billion in 2014. The stock price has since reached US$63.50.

The company claimed that almost all deliveries were completed on the same day or the next day, with a net loss of US$518.6 million in the three months to June, a five-fold increase from the second quarter of last year.

Despite the blow, founder and CEO Bom Kim is still optimistic about investors, noting that Coupang has achieved revenue growth of more than 50% (calculated at a constant exchange rate) for the 15th consecutive quarter.

“We believe that we are the largest e-commerce participant, and the growth rate is one of the largest and fastest-growing e-commerce opportunities in the world,” Kim said on an investor conference call after earnings.

Excluding the impact of June fireThis resulted in the death of a firefighter and triggered a wave of public complaints and boycotts of Coupang’s handling of the incident in Seoul. The loss in the second quarter more than doubled to $223.1 million. The company pointed out that the fire insurance benefits have not yet been confirmed.

Coupang benefited from strong demand during the Covid-19 pandemic, and its revenue in the second quarter reached a record US$4.48 billion. More than 4.2 billion U.S. dollars Compared with the same period last year, it increased by 71%.

The company’s net income per active customer, which the company calls a “key indicator” of success, was US$263 in the second quarter, compared to US$262 in the first three months of this year, 36% higher than the second quarter of 2020.

In the three months ending in June, Coupang’s number of active customers (defined as customers who purchased goods at least once in the quarter) was 17 million, up from 16 million in the first quarter and 13.5 million in the same period last year.

Coupang was hit by a series of allegations Labor issues, Including South Korean politicians and family members of deceased employees and subcontractors claiming to be overworked.

The company denied responsibility for the matter Employee death And allegations of poor working conditions related to its operations.

In its quarterly results, Coupang highlighted more than US$200 million invested in worker safety programs.

“Our existence is to bring new moments of’wow’ to our customers,” Kim said. “While we create these moments, we will continue to open up a better world for every customer, merchant and employee we touch-making everyone want to know’how we live without Coupang’.”

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