China's Temu more than doubles EU profits to nearly $120m despite having only eight staff

"The accounts filed for the group's Ireland-based EU parent group, Whaleco Technology, also show revenues rose to $1.7bn, compared with $758m the previous year, before new controls on the super-budget retailer. Separate documents show Temu now has more than 115 million customers across the EU equivalent to more than a quarter of the population. The figures emerged after separate accounts showed almost doubling profits and revenues at the online marketplace's UK operations."

"The rise in sales comes before moves by the EU to close a loophole that allows packages worth less than 150 (130) to avoid customs duty and some border checks. Last year, 4.6bn low-value parcels entered the EU, equivalent to 12m a day, three times more than in 2022. More than 91% of parcels valued at less than 150 came from China, where Temu and its fellow low-cost seller Shein make and dispatch most of their goods."

Temu's EU operations recorded a 171% rise in pre-tax profits to just below $120m in the 12 months to December 2024, while employing eight people. Revenues for the group's Ireland-based EU parent Whaleco Technology rose to $1.7bn from $758m the previous year. The company paid $18m in corporation tax, including almost $3m in a mandatory top-up introduced after the EU adopted a global minimum tax. Temu now has over 115 million EU customers. The surge occurred amid large volumes of low-value parcels from China and before EU measures to close the <€150 de minimis loophole and apply customs duties.

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