South Korean e-commerce company Coupang has posted double-digit revenue growth and a significant decrease in net income for the first quarter, with Farfetch results included in the data.

The New York-listed company’s net revenues were US$7.1 billion for the three months ended March 31, up 23 per cent year on year on a reported basis and 28 per cent on an FX-neutral basis. 

Net income attributable to Coupang stockholders has plummeted from $91 million last year to just $5 million in the first quarter, the decrease attributed primarily to the inclusion of the losses incurred at Farfetch. Excluding Farfetch, net income was $98 million.

Excluding Farfetch, the revenue growth was 18 per cent on a reported basis and 23 per cent on an FX-neutral basis. The growth rates excluding Farfetch would have been 10 percentage points higher without the accounting change in FLC revenue, which was recorded starting last year’s second quarter.

The product commerce segment saw net revenues increase by 15 per cent to $6.5 billion, while the developing offerings segment (including International, Coupang Eats, Play, Fintech and Farfetch) reported a 337 per cent increase to $620 million. Excluding Farfetch, the growth was 134 per cent.

Gross profit rose 36 per cent to $1.9 billion. Excluding Farfetch, gross profit was $1.8 billion, up 27 per cent.

“With the addition of Farfetch results in our developing offerings segment, we now estimate that our 2024 adjusted EBITDA losses for developing offerings will be around $750 million, an increase of just $100 million,” said Gaurav Anand, CFO of Coupang.

“We also anticipate that Farfetch will achieve close to positive adjusted EBITDA on a run-rate basis by the end of 2024.”