"Temu UK reported revenues of $63.3m (46.4m) last year, almost double the $32m in 2023, while pre-tax profits similarly surged from $2m to $3.9m, accounts show. However, at an operating level, the company, which files under the name Whaleco UK at Companies House, reported losses widening from $7.9m to $8.7m year-on-year. The company put most of its broadening operating loss down to exchange losses. Because of Temu's small pre-tax profit, the company paid just $985,000 in UK corporation tax, up from $517,000 in 2023."
"The company's UK operation reports its income as a service fee, similar to how Amazon UK and Google UK operate, and says it generates revenues through the provision of corporate support services to its affiliated entities. While Temu is experiencing explosive growth in the UK, it and others such as cheap fast-fashion compatriot Shein and e-commerce company Amazon potentially face having to implement price rises after the government announced in April a review of a rule that allows small parcels to enter the UK duty-free."
Temu UK reported revenues of $63.3m last year, almost double the $32m recorded in 2023. Pre-tax profits rose from $2m to $3.9m, while operating losses widened from $7.9m to $8.7m, primarily attributed to exchange losses. The UK operation classified income as a service fee and stated revenues come from corporate support services to affiliated entities, similar to Amazon UK and Google UK. Temu paid $985,000 in UK corporation tax, up from $517,000 in 2023. The government announced a review of the duty-free rule for low-value parcels under £135, which could force price rises and affect competitiveness versus domestic retailers.
Read at www.theguardian.com
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