After booking statutory losses of $61.4 million over the 2022 and 2023 financial years and breaking even in FY24, online retailer Kogan has posted a significant US$106 million first-half profit.
Gross sales and revenue for Kogan (ASX : KGN) increased by 10.3% ($492.5 million) and 9.9% ($272.7 million) respectively as its active customer base grew 9.4% year-on-year, punching through the 3 million mark for the very first time.
The company's gross profit rose by 18.3% to $106 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 $25.3 million.
Kogan.com, the primary driver, saw its own adjusted EBITDA rise by 48.0%.
Founder and CEO Ruslan Kogan said that having returned the company to profitability in FY24, [the business has] 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."
The company's balance sheet remains strong, with cash reserves of $67.7 million and no outstanding debt, alongside holding inventories of $84 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,” Kogan said.
“From everyday essentials to the latest technology and exclusive member benefits, we remain focused on helping our millions of customers live their best lives.”
The online retailer declared an interim dividend of 7c per share and said it intends to resume its share buyback program.
What next?
For H2 FY25 Kogan says it expects continued top line growth driven by continued strong performance at Kogan.com and a recovery in Mighty Ape.
It highlighted a continuation of strategic investments in Kogan.com's marketing arm and leveraging operational efficiencies and improved cost structures to further increase profits - especially after solving technical issues with its Mighty Ape offering.
Shares in the $450 million market-capped Kogan were $4.50 at pre-market open at the time of writing.
