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Kogan Reports $11.9M Loss as Profits Slip in First Half of FY22

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By Published On: February 25, 20220 Comments

It's been a mixed bag of results for Kogan in its first half of FY22, with growth across key categories, while falling short in others. 

Even as the business recorded an increase in sales, it has fallen into the red and taken an $11.9 million interim net loss.

The online retailer reported a 9.4 percent increase in Gross Sales to $698 million and a CAGR of 46.9 percent since 1HFY20. Moreover, Kogan.com’s revenue is down 17.3 percent. Its overall revenue has only slightly outperformed last FY, up 1.3 percent to $419.5 million, with a CAGR of 38.2 percent since FY20.

Offset by this was its Gross Profits, which is down 8.1 percent to $108.1 million. Gross margin is down 9.3 percent compared to FY21, as is its adjusted EBITDA, which has dropped 66.4 percent to $17.4 million. Adjusted NPAT is down 85.6 percent YoY to $4.8 million, with adjusted EPS also down 85.8 percent since FY21.

Exclusive Brand revenue declined by 11.2 percent, and Third-Party revenue has also dropped 22.5 percent. Gross sales for Kogan Marketplace has increased 28.7 percent.

Ongoing supply chain interruptions have impacted these results, as well as associated surges in customer demand, the company reported.

Kogan currently has an operating cash inflow of $61.7 million, with net cash at bank of $39.7 million, after funding of $29.9 million Tranche 2 Mighty Ape acquisition.

Its share prices have resumed following s short pause this morning. Following the release of the results, its shares paused, following a brief increase of 1.07 percent to $5.61. Since then, shares have shed 13,55 percent, falling below $5 a share (currently $4.91).

“Our Business has achieved huge scale, from the roughly $100 million Gross Sales recorded in the December half prior to our listing in 2016, to our largest recorded Gross Sales in a single half of $698 million in 1HFY22,” said Ruslan Kogan, Founder and CEO of Kogan. “We have set our sights high, with a five-year goal of $3 Billion in annual Gross Sales, which the first-half results show we are progressively on our way to achieving.”

The CEO explained that the business has invested heavily in the expansion of its product offering. “What you’re seeing right now is the building blocks for an even bigger and greater business, as we invest in building the best place for Aussie and Kiwi customers to get what they need,” he said.

Kogan has hit a milestone of reaching more than four million Active Customers, which is up 9.4 percent, now at 4,071,000. “Over the last six months we have invested heavily on expanding product choice, value and speed of delivery for our over four million Aussie and Kiwi shoppers to delight them each and every step of the way,” Kogan continued. However, its revenue per user metric has fallen.

The company has not given earning guidance for the second half of FY22, which is consistent with their previous years. The Board has also decided to not share an interim FY22 dividend.

Future prospects include the ongoing expansion of Kogan Marketplace and further integration of the Mighty Ape team and operation. The retailer went on to explain its goal of reaching one million subscribers to its Kogan First loyalty program by 2026 – it currently has 310,000.

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