- Online retailer Kogan (KGN) has seen an $11.9 million net loss in profits for the half-year ending December 31, despite the busy holiday season
- The company attributes the loss to ongoing supply chain issues as a result of COVID-19 disruptions and fluctuating consumer demand
- However, group sales jumped 9.4 per cent to a record $698 million and the company says that January showed signs of a 12 per cent sales growth
- Kogan is in a trading halt, pending a further announcement, and last traded down 9.45 per cent at $5.05
Kogan (KGN) has seen an $11.9 million net loss in profits for H1 FY22, a period that’s usually busy due to the Christmas and Black Friday shopping seasons.
The online retailer said the loss was mainly due to ongoing supply chain issues as a result of COVID-19 disruptions and fluctuations in consumer demand
However, group sales jumped 9.4 per cent to a record $698 million and the company said that January showed signs of a 12 per cent sales growth, compared to this time last year.
Kogan believes it’s well-positioned to meet its five-year goal of $3 billion in annual gross sales.
The integration of Mighty Ape is progressing well, with the business recording a strong trading performance of $93.8 million in revenue for the first half.
Mighty Ape is a New Zealand online store that specialises in gaming and entertainment products.
By the end of the half-year, Mighty Ape had 757,000 active customers which contributed to the 9.4 per cent increase in Kogan Group active customers of 4.07 million.
“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,” CEO and Co-Founder Ruslan Kogan said.
“I am extremely proud of our team’s achievements, and even through the COVID situation — which has continued to bring operational disruption to all industries around the country and the world — our team has continued to focus on innovative ways to further enhance the Kogan.com and Mighty Ape customer experience.”
For the rest of FY22, Kogan expects to generate further growth in Kogan First subscriptions heading towards the FY26 goal of one million subscribers.
After announcing the results, Kogan went into a trading halt pending a further announcement.
Company shares were down 9.45 per cent and trading at $5.08 at 3:18 pm AEDT.