April 22, 2024

Delivery app operator Woowa's net surges 84% in 2023

PUBLISHED : March 29, 2024 - 16:29

UPDATED : March 29, 2024 - 16:29

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(Woowa Brothers)

Food delivery app owner Woowa Brothers posted a 84 percent on-year jump in net profit last year, allowing over 400 billion won ($297 million) in dividends to its German parent, Delivery Hero.

Woowa Brothers' net profit soared to 506.2 billion won in 2023 from 275.8 billion won a year earlier helped by increased e-commerce transactions and its reasonable delivery costs, according to the company Friday.

Operating profit also jumped 65 percent to 699.8 billion won from 424.1 billion won during the same period, with its operating profit margin rising to 20.5 percent from 14.4 percent.

Sales were up 16 percent to 3.41 trillion won last year from 2.94 trillion won a year ago.

The company's delivery app, Baedal Minjok, or Baemin, leads the country's food delivery app market, leaving GS Retail's Yogiyo app and Coupang Eats, the food delivery arm of e-commerce leader Coupang, behind it.

South Korea is one of the world's biggest food delivery markets, backed by its high smartphone penetration and dense population.

In December 2019, German online food delivery service Delivery Hero acquired South Korea's top food delivery app operator Woowa Brothers for $4 billion.

Delivery Hero currently owns a 99.07 percent stake in Woowa Brothers.

South Korea's online food delivery market grew sharply to reach 25 trillion won in 2021 amid the extended pandemic from 2 trillion won in 2017, according to Statistics Korea.

Baemin accounts for more than 60 percent of the market, with the remainder shared by Yogiyo and Coupang Eats, the company said.

Woowa Brothers said it has provided the dividends to its parent firm as its earnings improved in 2022 after reporting operating losses in the previous two years.

"The dividends are for Delivery Hero to secure capital for reinvestment for sustainable growth," Woowa Brothers said. (Yonhap)

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