Kogan returns to profitability despite lower revenue
Kogan is back in the black despite lower revenue during the last fiscal year.
The online retailer’s net profit attributable to shareholders was $21 million, a significant turnaround from a loss of $4.3 million in the preceding year. Revenue dipped 6.1 per cent to $459.7 million.
The number of Kogan First loyalty program subscribers rose 25 per cent to over 502,000, and of Mighty Ape (New Zealand) subscribers by 35 per cent to 23,000.
“Our business returned to a position of profitability and strength, having navigated through the previous two and a half years of turbulence,” said Ruslan Kogan, CEO and founder.
“We got through this by restructuring and improving our operations, focusing on growing the right areas of our business, rapidly growing platform-based sales, and most importantly, investing in our loyal customer base.”
The company says it completed the fiscal year with $41.2 million of cash and no debt.
Unaudited figures released for July, the first full month of trading in the new financial year, showed continuing growth momentum, with revenue up 15.6 per cent to $40.3 million and adjusted EBIT up 88.9 per cent to $4 million.
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