Kogan’s first quarter signals recovery from difficult FY21
Online marketplace Kogan has recovered somewhat from disasterous inventory and logistics costs of last year, with gross profit growing 31.6 per cent during the first quarter of FY22 compared to the prior quarter, though remained 1.7 per cent down on the same time last year.
Gross sales grew 21 per cent year on year to $330.5 million, driven by Kogan First memberships – which hit 197,000 members in the quarter – as well as strong growth in Kogan Marketplace and Mighty Ape.
“We set a very high standard for ourselves, and I am proud of the way the Kogan team has continued to deliver on our mission,” said founder and chief executive Ruslan Kogan.
“While overcoming many challenges, the Kogan team has continued to deliver strong growth while investing in the future of the business and incubating new ways to deliver more value to our customers in the long term.”
According to the business, the inventory and warehousing woes that caused annual profit to fall 86.8 per cent through FY21 have been “resolved”, partially by closing a number of inefficient overflow warehouses which reduced its overall warehousing costs.
Looking further into FY22, Kogan has said it will look into logistics projects that do “not require significant capital expenditure and can be supported by the company’s balance sheet”.
“Over the next year we’ll be rolling out new and exciting projects to further support our loyal Kogan Community with Kogan First Membership rewards, new and improved delivery solutions, and further enhancements to [our] online shopping experience,” Kogan said.