[News Space=Reporter seungwon lee] Retail tech company Kurly announced on the 5th that it achieved adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) profit for the first time last year.

According to the '2024 Management Performance Earnings Call' conducted by Kurly on this day, the company's consolidated sales for 2024 were provisionally tallied at KRW 2.1956 trillion, up 6% year-on-year. Operating loss was KRW 18.3 billion, down KRW 125.3 billion, and adjusted EBITDA was KRW 13.7 billion, up KRW 121.4 billion. Total transaction value (GMV) for the same period reached KRW 3.1148 trillion, up 12%.

This figure is more than double the 5.8% growth rate of domestic online shopping (based on transaction amount) last year recently announced by Statistics Korea.

The company explained that the achievement of the first ever EBITDA surplus in the midst of the economic recession and consumption contraction that hit the country last year was the result of a two-track strategy that focused on both ‘profit and loss and growth.’ In order to secure future momentum, the company was able to ‘maintain the break-even point’ in terms of cash flow while using the inflow of cash to ‘invest for growth,’ thereby achieving external expansion.

In fact, last year, Kurly focused on the so-called ambidextrous management strategy of strengthening core competitiveness and also finding new growth engines. While increasing the competitiveness of its main fresh food, it expanded its categories to non-food groups such as beauty, fashion, and living. It also strengthened services such as support for partner growth, discovery of new brands, and live commerce. As a result, both Market Kurly and Beauty Kurly showed steady growth, and Beauty Kurly in particular grew 23% year-on-year in terms of transaction amount, maintaining double-digit growth for two consecutive years since its service launch.

The effect of Kurly Members, which significantly improved shopping benefits such as free daily shipping, led to increased customer activity and increased profitability. As of the end of last year, the cumulative number of subscribers was approximately 1.4 million, and the payment ratio of members’ registered customers accounted for 50% of the total transaction amount.

In terms of cost reduction for establishing a sustainable profit structure, logistics center efficiency was effective. Kurly logistics centers in Gimpo, Pyeongtaek, and Changwon were able to significantly reduce operating costs through automation processes, improved order processing efficiency, and stable operation.

Diversification of revenue sources, such as expansion of the Culse area and entry into new businesses, was also one of the driving forces behind the EBITDA surplus. Last year, the Saetbyeol delivery area expanded to 11 regions, starting with Gyeongju in February, followed by Pohang, Yeosu, Suncheon, Gwangyang, and Gwangju. In July, the Jeju Island one-day delivery service was opened. In June and October, the first quick commerce services, Culnau Sangam and Dogok, opened respectively. The expansion of the 3P business and the full-scale launch of the fulfillment service (FBK) also contributed to improving profitability.

A Kurly official said, “As a result of our continuous investment in new businesses and customer management last year, we were able to achieve solid growth despite the difficult economic times by focusing on both profit and loss and growth simultaneously.” He added, “This year, we plan to make Kurly’s 10th anniversary the first year of its leap forward by focusing even more on strengthening our core business and discovering new businesses.”