SEOUL, March 20 (Korea Bizwire) — Woowa Brothers Corp., South Korea’s top food delivery app operator, said Friday it swung to an operating loss in 2019 despite a jump in sales.
Its operating losses stood at 36.4 billion won (US$29.2 million) last year, a sharp turnaround from operating gains of 52.5 billion won a year earlier.
Sales soared 79.8 percent on-year to 565.4 billion won in 2019, more than 11 times greater than the figure four years earlier. The company didn’t release its bottom line for 2019.
Woowa Brothers registered an operating loss for the first time in four years last year, which was attributed to bigger advertising and marketing costs stemming from fiercer competition.
Small food service companies posted 8.6 trillion won in combined sales through the food delivery app Baedal Minjok last year, up 3.4 trillion won from a year earlier, Woowa Brothers added.
In December, Germany-based company Delivery Hero said it agreed to acquire an 87 percent stake in Woowa Brothers for $4 billion. The proposed takeover has yet to win regulatory approval here.