“We’re Just Getting Started” – Kogan 1HFY20 Results

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By Published On: February 18, 20200 Comments

Kogan (ASX:KGN) has released its 1HFY20 results ending 31 December 2019, reporting strong growth over the last quarter.

The online retailer has reported a Gross Profit Sales increase to $322.9 million, up 16.4 percent from the previous year.

The revenue for the retailer has decreased by 5.3 percent from last year ($219.5 million). This is due ‘largely’ to the growth of Kogan Marketplace in ‘respect of which only the seller fees are recognised as Revenue’.

Adjusted EBITDA increased 35.2 percent to $18.2 million (1HFY192: $13.4 million), and NPAT grew 20.8 percent to $8.9 million (1HFY19: $7.4 million).

“We are proud to have delivered a record half in Gross Sales and Gross Profit whilst delighting our customers with the broadest offering we’ve ever had and the widest and fastest distribution network we’ve ever had,” said Ruslan Kogan, CEO and Founder of Kogan.

“This half has been a period that saw us taking significant steps to invest in the future success of our platform and make it easier than ever for customers to shop with us. You can now use our platform to get an incredible deal on ab wheels or zip lock re-useable sandwich bags and everything in between.”

via Kogan

Brand Growth

Kogan has experienced growth of active users of 10.2 percent in the last 12 months, now reaching 1.69 million. Kogan First memberships scaled ‘significantly’ during 1HFY20 – “Since its inception members have received over $1 million of additional benefits,” the company reported.

“We’re just getting started, and we’re looking forward to delighting our customers with the benefits of these strategic investments for years to come,” Ruslan said this morning.

Kogan Internet saw an increase of customers by 344.4 percent YoY, resulting in commission-based revenue increasing by 642 percent over the same time period.

Kogan Mobile Australia experienced a growth of 5.1 percent and commission-based revenue growth of 6.8 percent.

Commission-based revenue for Kogan Insurance also scaled with an increase of 44 percent YoY.

Kogan Marketplace has experienced an increase of Gross Sales by 44.6 percent QoQ. “The platform is resonating with sellers, with our marketplace having increased the number of sellers on the platform by 55.2 percent QoQ,” the company read in a statement. “There continues to be a long backlog of sellers ready to be onboarded onto our platform.”

“During the period we delivered several game-changing projects including the launch of four new business units whilst also growing Kogan Marketplace and expanding our Kogan First subscriber base,” Ruslan noted. “While Kogan First is still relatively new, we’ve already funded over $1M of benefits to Kogan First subscribers – these benefits include free shipping, free upgrades to express shipping and exclusive discounts. All of these business units provide new avenues to delight our customers and further expand our loyal Kogan Community.”

“In particular, the continued investment in the Kogan Marketplace platform has led to a transition period for the Company. As we progress our investment in the Kogan Marketplace platform, it will enable our Business to achieve ongoing growth without the ongoing investment in inventory.”

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  1. Vic Cherikoff February 19, 2020 at 12:37 PM - Reply

    I am amazed.
    Every item I have bought from Kogan (before I learned my lesson) lasted about a week and customer service was so bad that I just cut my losses.
    Cheap Chinese rubbish that I could have bought from AliExpress for 1/10th the price AND had better service.

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