Kogan records nearly five-fold profit rise
Kogan.com’s run of impressive growth has continued in the first-half, with the online retailer and service provider unveiling a near five-fold increase in net profit after tax (NPAT) to $8.3 million for the half-year ended 31 December.
The increase in net profit – more than double FY17 NPAT – was achieved on the back of a 45.7 per cent increase in revenue to $209.6 million compared to the prior-corresponding period (PCP).
Earnings before interest and tax (EBIT) increased to $11.6 million, more than double the $5.4 million in earnings booked in the PCP.
Kogan said that top-line growth was driven by a 40.5 per cent increase in active customers, investment in inventory and marketing.
The company declined to provide formal EBITDA guidance, but said 2H unaudited accounts were showing a further acceleration in revenue, above that achieved in the first-half.
“Our consumer offering is always improving, and we continue to exceed customer expectations as our business grows. We are always mindful of the fact that our customers have a lot of choice and we’re humbled by the fact that more and more Aussies are voting for us with their wallets,” Kogan.com founder and CEO Ruslan Kogan said.
“The business is in the best shape it’s ever been, and our team is excited about our pipeline of initiatives that will further enhance our consumer offering.”
Gross margins expanded by 1.4 per cent to 19.4 per cent on the back of growth in private label and partner brands.
Kogan’s exclusive brands achieved revenue growth of 47.3 per cent year-on-year, representing 45.1 per cent of overall gross profit.
Services continue to grow, with Kogan Mobile achieving revenue growth of 340.9 per cent year-on-year, generating $4.8 million in commissions over the first-half.