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Kogan Sales Fall by 5.6 Percent

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By Published On: January 24, 20240 Comments

Kogan has revealed that sales are down across the company but a new focus on being “capital-light” may drive its way to profitability.

Kogan has released its results for H1 of FY24. Gross sales declined 5.6 percent YoY, to $445.4 million. Kogan Marketplace sales slipped 9.1 percent, down by $13 million YoY to $129.2 million. Exclusive Brands sales slipped by $29.7 million, down 25.1 percent to just $88.5 million for the year. Mighty Ape scraped by with a 0.1 percent growth YoY from $87 million to $87.1 million. Third Party Brands sales also dropped, by 23.1 percent to $44.5 million for the half.

The company attributes this sales decline to a focus on platform-based sales, following a push to reduce inventories and “evolve into a more capital-light business.”

Kogan has spent the last few years making up for an excess of stock bought in over Covid. Last year, FY23 results saw the business deliver an adjusted EBITDA of $ 6.8 million, though adjusted net loss after tax totalled $ (7.7) million. Revenue was also down 31.9 percent in FY23 vs FY22 to $489.5 million.

FY24 is not off to the strongest start sales-wise, however the company’s new focus appears to be paying off. Platform-based sales grew to 62.8 percent of growth sales, with’s new advertising platform bringing in $1.3 million in advertising revenue for the half. 

The focus on a reduction in inventory is evident with inventories totalling $68.2 million, a reduction of 30.6 percent YoY. 

Gross profit rose 42.1 percent overall to $89.5 million across and Mighty Ape. Adjusted EBITDA totals $21.5 million in H1 FY24, returning the company to sustained profitability.  

Kogan’s loyalty program, its FIRST Subscribers are continuing to grow slowly with subscribers totalling 466,000 as at 31 December 2023, compared to 404,000 the year prior, a growth of 15.3 percent. Mighty Ape Primate Subscribers have similarly grown, up 8000 members YoY at 24,000.

“The past six months have seen go from strength to strength, delivering on multiple projects for our Customers and ensuring we continue to help customers live their best lives by offering remarkable value,” said founder and CEO Ruslan Kogan. 

“The growth in our Kogan FIRST loyalty program and community demonstrates the value we are delivering every day to our customers. We now have over 466,000 Kogan FIRST Subscribers amongst our millions of customers, who get to enjoy the many new benefits we’ve introduced to the program.

“In the face of continued cost-of-living pressures, our team remains dedicated to delivering the best value to support the millions of Aussies and Kiwis who are feeling the pinch. Having returned the Business to a position of stability and strength, our unwavering focus remains on enabling Aussies and Kiwis to live their best lives.”

About the Author: Rosalea Catterson

Rosalea is the Editor of Power Retail. With a keen interest in consumer behaviour and tech, she covers everything ecommerce and hosts the Power Retail Power Talks Podcast.

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