Kogan posts strong profit growth in Q1
Online marketplace Kogan said its exclusive brands saw strong growth in the first quarter of FY20, growing 35 per cent on the prior corresponding period.
Kogan saw a 16 per cent increase in gross sales compared to the previous corresponding period and gross profit rose 28 per cent on the prior year.
Operating costs grew by less than 3 per cent compared to the previous corresponding period.
Kogan posted a 14 per cent year-on-year active customer growth. The company had active customers of 1,653,000 as of September 30, 2019 compared to the 1,450,000 as of September 2018.
“The first quarter of FY20 saw strong growth in Exclusive Brands and continued momentum in Kogan Marketplace,” said Kogan founder and CEO Ruslan Kogan.
He said the team delivered the launch of many initiatives that had been a focus in their business for a long time: Kogan Mobile NZ, Kogan Money Credit Cards, Kogan Money Super and Kogan Energy.
“The customer values that Kogan.com is offering in each of these new markets is clear,” Kogan said.
“Kogan Mobile is already shaking up the New Zealand prepaid market, Kogan Money Credit Cards is offering the best value consumer credit card in Australia, Kogan Money Super is offering ultra low fee index-based funds, and Kogan Energy has some of the lowest cost renewable energy deals in the market.”
Kogan said with these results and with the team continuing to build an innovative, efficient, agile and resilient business, they are looking forward to the key Christmas quarter with confidence.
“The product range available on our site is the biggest it’s ever been, our service is the best it’s ever been and we have the widest logistics network out of any e-commerce company in Australia — all this means our customers will get their Christmas orders faster and cheaper than ever before,” he said.
“We’re actually a little worried Santa will spill his milk and cookies when he sees our lineup for Christmas.”