Supply-chain snarls eat into Kogan’s bottom line
Pureplay electronics retailer Kogan has struggled to maintain momentum in its first half, although its New Zealand subsidiary Mighty Ape reduced the impact on its bottom line.
Citing Covid-related supply chain interruptions and “associated fluctuations in demand” Kogan’s post-tax profit was $14.6 million, down 70.1 per cent, however Mighty Ape’s profit soared 147.3 per cent to $7.1 million. Combined group profit was thus $21.7 million, down by 58 per cent.
The impact of stock shortages and other business interruptions due to the pandemic marred an otherwise strong quarter, with the number of active customers growing 10 per cent during the half and membership of its Kogan First loyalty program reaching 274,000.
“Over 4 million Aussie and Kiwi shoppers have recently experienced the choice, value, and delivery benefits of the Kogan.com group,” said founder and CEO Ruslan Kogan.
As of the end of December, Kogan boasted 3.314 million active customers and Mighty Ape 757,000.
Gross sales of $698 million grew by more than 9 per cent year on year, driven by the “continuously accelerating Kogan Marketplace,” Kogan First, Kogan Energy and Kogan Mobile New Zealand. Some of that growth was offset by a decline in both the Exclusive Brands and Third-Party Brands divisions which had extreme growth in the prior year.
Launched last year, the Kogan Delivery Services business chalked up more than 100,000 deliveries direct to consumers.
Kogan did not offer any projections for performance over the new half-year. “As always we’re obsessed with the long term, and our ever-improving customer experience continues to underpin business success,” he said.