Kogan sales up 18 per cent ahead of holiday period
Online marketplace Kogan grew gross sales more than 18 per cent year-on-year in the month of October, while gross profit improved 22 per cent over the same period.
Chief executive Ruslan Kogan said the result was due to the focus on running an efficient company with a low cost of doing business.
“While the first 4 months of the financial year are exhibiting strong growth metrics, we know that the business end of the year is ahead of us with the Christmas trading period of November and December,” Kogan said during the business’ AGM on Tuesday.
“These are usually the most important trading months of the year for us.”
Kogan also confirmed its recently launched Marketplace offering will soon integrate Shopify, which he expects will accelerate the onboarding of sellers. Chairman Greg Ridder said the launch has proven transformational for the business.
“It will allow the business to move to a more capital-light model, as a greater proportion of gross sales are not reliant on inventory,” Ridder said.
“Kogan Marketplace is a huge win for everyone – it creates more competition on our platform, driving prices down for our customers while giving them much more choice, it helps grow Australian and International businesses that sell through our platform and it makes our company much stronger.
Ridder noted that the remainder of the year would be very exciting, while Ruslan Kogan hinted that there will be more vertical launches in the remainder of FY20.
“FY20 has already seen us launch Kogan Super, Kogan Credit Cards, Kogan Mobile New Zealand and Kogan Energy ahead of schedule,” Kogan said.
“We’re continually evolving the business to respond to the demands of our customers and to strengthen our competitive advantage. We’re just getting started.”
All resolutions passed by a wide margin during the AGM, including the adopting of the business’ remuneration report, the re-election of Greg Ridder as director, as well as the election of Michael Hirschowitz as director.
Shares in the online marketplace rose to $7.59 per share on Monday ahead of the AGM, but fell back to a more moderate $7.19 per share following the meeting.