Kurly achieved its biggest-ever quarterly results in the first quarter, supported by balanced growth across all business units and logistics upgrades. It will use the results to move ahead with an initial public offering (IPO).

Kurly said in a filing on May 11 that first-quarter consolidated revenue rose 28.4 percent from a year earlier to 745.7 billion won. Operating profit was 24.2 billion won, up 1,277 percent from a year earlier. Net profit was 20.3 billion won, returning to the black. Gross merchandise value (GMV) also rose 29 percent to a record 1.09 trillion won.

The strong results were driven by solid growth in its core fresh food and beauty businesses, as well as diversified units including seller delivery (3P), fulfilment service (FBK) and Kurly N Mart. First-quarter transaction value rose 27.8 percent from a year earlier in the food category, 20.2 percent at Beauty Kurly and 52.6 percent in seller delivery. Kurly N Mart’s March transaction value rose about ninefold from September last year, leading performance.

Kurly said it analysed that its midnight dawn delivery service introduced in February and upgraded operations at its Gimpo, Pyeongtaek and Changwon logistics centres had a positive impact on profitability. As it focused on cost efficiency, first-quarter gross margin rose to 33.1 percent, up 0.8 percentage points from a year earlier, and the selling, general and administrative expense ratio fell 2.2 percentage points.

On May 6, Kurly carried out a 33.0 billion won third-party allotment capital increase targeting Naver, receiving a corporate valuation of 2.8 trillion won and laying groundwork to secure new growth engines.

Jonghoon Kim (김종훈), Kurly’s chief financial officer, said, “Through steady efforts in products, logistics and technology, we differentiated the customer experience, and attempts to diversify businesses to secure new growth engines have been showing results since the first quarter this year.” He added, “As we have demonstrated both growth and profitability by establishing a clear business model that a differentiated technology platform company should have, we plan to make our IPO roadmap more concrete and speed it up.”