Kogan says it is set for a strong 2024, reports strong July profit

Rakshnna Pattabiraman

22nd Aug 2023

Trans-Tasman online retailer Kogan’s full-year profits declined due to soft trading conditions however, the business is off to a strong start in FY24.

For the year to June 30, gross sales reached $844.8 million, down 28.4 per cent while statutory tax-paid profits fell to $25.9 million and EBITDA of $20.8 million. For July, the first month of the new trading year, Kogan said adjusted management accounts showed an EBITDA of $3.5 million.

For the year to June, active customers totalled 2.95 million comprising 2.19 million on Kogan.com and 755,000 for Mighty Ape.

The Kogan First loyalty program grew to more than 401,000 subscribers with revenue up 69.6 per cent to $26.3 million.

The company says it will continue to work on new benefits and features of the program to accelerate growth in the upcoming financial year.

The business also relaunched Kogan Insurance and transitioned partnerships for Kogan Insurance home, contents, car, landlord and life.

The company’s New Zealand subsidiary Mighty Ape saw gross sales and revenue decline by 5.9 per cent and 5.3 per cent respectively while adjusted EBIT reached $7.2 million and adjusted NPAT of $5 million.

In this period, Gracie MacKinlay became the new CEO of Mighty Ape and Daniel Balasoglou its new CFO.

Ruslan Kogan, founder and CEO, said the year marked a “significant milestone” in the history of the business.

“Having returned Kogan.com to sustained and increasing underlying profitability in the second half of this year, we look to FY24 with confidence.

“We expect the number of Kogan First subscribers to accelerate following the expansion of the program, continued growth in our verticals, a return to growth in Kogan Marketplace as well as our recently introduced advertising platform, the launch of a new vertical in New Zealand and continued improvement in our product division’s profitability.

“These initiatives are expected to underpin continued growth in the business and support ongoing growth in shareholder value,” he said.