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Kogan sales exceed half a billion during FY19

Consumer Discretionary
ASX:KGN      MCAP $493.3M
19 August 2019 23:06 (AEST)

Online retailer Kogan has achieved over half a billion dollars in gross sales during the 2019 financial year.

The total figure reached $551.8 million, up 12 per cent on the previous year.

Profits, after tax, jumped 21.9 per cent to $17.2 million and earnings before interest, tax, depreciation and amortisation increased 15.6 per cent, coming in at $30.1 million.

Revenue also saw an incline, up 6.4 per cent for the fiscal year, bringing it to $438.7 million.

CEO and Founder of Kogan.com, Ruslan Kogan, said improving customer offering was a key factor during the past year.

“We now have 13 distribution centres, enabling us to delight customers all over Australia and New Zealand with fast and more cost efficient delivery options. We have also significantly expanded our product range, giving our customers more choice and driving more competition on our platform,” Ruslan commented.

Kogan gained an additional 221,000 active customers in the past 12 months, brining the total active customer base to 1,609,000.

Exclusive brands drove revenue, accounting for nearly half of gross profit, following a 41.6 per cent increase in sales.

The Kogan Marketplace was another source of profit since it launched during the fiscal year. A total of $1.5 million was gained in commission-based revenue.

Kogan Insurance saw commission-based revenue grow 144 per cent on the previous year, while Kogan Mobile’s commision-based revenue rose 9.8 per cent.

Additionally, Kogan Internet’s active customer base increased 273.2 per cent during the year.

Throughout the 2020 financial year Ruslan said the company will launch a series of new ventures.

“During the financial year, we also continued to lay the foundation for future growth by either launching, or preparing for launch, a number of exciting new portfolio businesses – Kogan Cars, Kogan Credit Cards, Kogan Super, Kogan Mobile New Zealand and Kogan Energy,” he said.

Shareholder’s will receive a final fully franked dividend of $0.082 a share. This brings the total dividends for the 2019 financial year to $0.143 for every share, up 10 per cent on the last year.

Kogan’s share price is up 7.82 per cent today, currently sitting at $5.65 per share at AEST 1:59pm.

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