Kogan.com reports strong growth with USD $493m sales in 1H25

Kogan.com has reported strong financial results for the first half of the financial year 2025, showcasing an upward trajectory in both sales and profitability.

The group announced an increase in gross sales and revenue by 10.3% and 9.9%, respectively, reaching USD $492.5 million and USD $272.7 million. The company saw its active customer base surpass 3 million, marking a 9.4% year-on-year increase, indicative of a growing market share.

The company's gross profit rose by 18.3% to USD $106.0 million, with the gross margin expanding by 2.8 percentage points to 38.9%. Adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) grew by 17.5% to USD $25.3 million. Kogan.com, the principal driver, saw its own adjusted EBITDA rise by 48.0%.

Ruslan Kogan, Founder and CEO, commented, "Having returned the Company to profitability in FY24, I'm pleased to report today that we have built on that momentum and returned the business to strong sales growth in 1HFY25. This was achieved through disciplined execution, operational efficiencies, and strategic initiatives that we expect will continue to drive sustainable growth into the future."

Kogan.com achieved a 15.4% and 22.3% growth in its gross sales and revenue, respectively, supported by an optimised marketing strategy during the peak trading period. Its own loyal customer numbers increased by 15.7% to 2,345,000.

Kogan Products saw revenue climbing by 21.7% to USD $141.0 million, with a 37.5% increase in gross profit. The Kogan Marketplace also experienced growth, with gross sales rising by 16.7% and revenue by 20.2%, aided by a strategic marketing shift in late October 2024.

Kogan Verticals recorded a revenue of USD $11.3 million, reflecting a 16.7% growth, with notable performances from Kogan Mobile and Kogan Energy.

The loyalty programme streams have grown as well, with subscription fees increasing by 24.2% to USD $28.2 million. Updates to the Mighty Ape PRIMATE loyalty programme are projected to enhance growth in the coming terms.

The Kogan.com advertising platform expanded its revenue by 36.3% to USD $2.1 million, showcasing benefits of strategic collaborations with marketplace sellers.

In New Zealand, the subsidiary Mighty Ape reported a revenue generation of USD $73.9 million and gross profit of USD $20.3 million, despite technical challenges following a recent website upgrade. However, it is expected that these enhancements will bolster future growth.

The company's balance sheet remains strong, with cash reserves of USD $67.7 million and no outstanding debt, alongside holding inventories of USD $84.0 million at the end of the period.

"As our customers continue to navigate the ongoing cost-of-living crisis, we are committed to easing the burden by offering market-leading prices on the most in-demand products and essential services. By leveraging our scale and strong supplier relationships, we deliver remarkable value. From everyday essentials to the latest technology and exclusive member benefits, we remain focused on helping our millions of customers live their best lives," Ruslan Kogan added.

Amidst leadership changes, Daniel Balasoglou has resigned as Mighty Ape CEO, with Robert McEwan set to take over alongside a planned transition process.

The board also announced plans for renewal, with directors Greg Ridder and Harry Debney set to retire in 2025 and 2026, respectively. The search for new non-executive directors is underway.

Reflecting the company's positive results, an interim dividend of 7.0 cents per share has been declared, with the dividend reinvestment plan offered at a 2.5% discount.