The Korea Herald


Kurly turns profit for first time

By Hwang Joo-young

Published : Jan. 23, 2024 - 16:33

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(Kurly) (Kurly)

Kurly, the operator of e-commerce platform Market Kurly, said Tuesday that it posted a profit in earnings before interest, taxes, depreciation and amortization, or EBITDA, in December last year – its first since its establishment in 2015.

The company said that EBITDA for December increased by more than 10 billion won ($7.5 million) compared to the previous year. The specific amount of the earnings was not immediately disclosed due to confidentiality issues.

The company stressed that the first monthly profit was not a temporary phenomenon, labeling it as the “outcome of structural improvement.”

Logistics costs have been greatly reduced, among other factors, as the platform improved productivity at the Changwon, South Gyeongsang Province, and Pyeongtaek, Gyeonggi Province, logistics centers, while closing the center in Songpa, Seoul.

Additionally, Kurly Members, a paid membership program introduced in August, helped secure loyal customers and reduce marketing costs.

Meanwhile, fixed costs such as labor, information technology system maintenance and other operating expenses were slightly reduced from the previous year, Kurly said.

As of December, Kurly’s cash equivalents were about 140 billion won, up about 12 billion won from the third quarter of 2023.

"Kurly's positive EBITDA for December is a valuable achievement as it shows the result of our ongoing structural improvements and efficiency efforts," said Kurly Chief Financial Officer Kim Jong-hoon. "We will continue to build on the momentum and drive further improvements this year."

Last year Kurly withdrew its plan for a stock debut, citing an economic slowdown and unfavorable investor sentiment.