- Kogan.com (KGN) increases gross sales by over 21 per cent year-on-year (YoY) to $330.5 million for the September quarter
- While gross profit declined by a slight 1.7 per cent (YoY), it rose 31.6 per cent on the prior quarter to $52.5 million
- Kogan.com active customers increased 30.7 per cent YoY to 3.35 million and Kogan First members grew 171.1 per cent YoY to 197,000
- Kogan says it’s pleased with the quarterly performance as it further cements the company’s position as a top online shopping community in Australia
- Company shares are up 7.14 per cent to trade at $11.71 at 1:58 pm AEDT
Kogan.com (KGN) achieved strong growth during the September 2021 quarter including a significant increase in sales.
The online retailer recorded a 21.1 per cent year-on-year (YoY) and 23.2 per cent quarter-on-quarter (QoQ) rise in gross sales to $330.5 million for the quarter.
This figure followed Kogan achieving just shy of $1.18 billion in group gross sales for the 2021 financial year. For reference, FY19’s gross sales were $552 million and FY20’s gross sales were $772 million.
While gross profit declined by a slight 1.7 per cent YoY, it rose by 31.6 per cent QoQ to $52.5 million.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) came in at $10.8 million for the September quarter which is a 240.7 per cent increase on the prior quarter but a 57 per cent decrease YoY.
Kogan is an Australian retail and services company with a portfolio of businesses — some of which include Kogan Marketplace, Kogan Insurance, Kogan Travel, Kogan Money, Kogan Cars, Dick Smith, and Mighty Ape.
In terms of customers, Kogan.com’s active customers increased by 30.7 per cent YoY to 3.35 million. The Mighty Ape business had 748,000 active customers by the end of the quarter and Kogan First members grew 171.1 per cent YoY to 197,000 as of September 30 2021.
Kogan First is the company’s rewards program that gives members access to exclusive rewards, sales and credit bonuses based on their spending.
The company focused on marketing Kogan Marketplace and Kogan First, improving logistics and customer service and successfully integrating Mighty Ape after acquiring the business at the end of last year.
Kogan said these initiatives drove the strong growth in its active customer base, further cementing its position as a top online shopping community in Australia.
“When it comes to delighting our customers, we set a very high standard for ourselves, and I am proud of the way the Kogan.com team has continued to deliver on our mission of making the most in-demand products and services more affordable and accessible,” Founder and CEO Ruslan Kogan said.
The billion-dollar stock also resolved previous inventory pressures and closed a number of inefficient overflow warehouses. This led to inventories reducing from $227.9 million as of June 30 to $194.3 million as of September 30.
This reduction led to the company to lowering its warehousing costs and delivering an average variable cost saving of about $800,000 per month in the September quarter.
Company shares were up 7.14 per cent to trade at $11.71 at 1:58 pm AEDT.