Online retailer Kogan.com’s full-year profit has soared 277pc
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Kogan.com posted a 277 per cent rise in full year profit to $14.1 million, up more than $10 million from last year’s $3.7 million, driven by the pure play online retailer’s portfolio strategy.
The result came as revenue jumped by $122.8 million or 42 per cent to $412.3 million.
Kogan.com has been expanding its portfolio offering, with more on the way.
The company has whitegoods, Kogan Retail, Kogan Marketplace, Kogan Mobile, Kogan Internet, Kogan Insurance, Kogan Health and Kogan Travel.
The company’s active customer base is now 1.4 million — up by 433,000 or 45 per cent.
Kogan Mobile is now the biggest contributor from the company’s portfolio, growing gross profit by 233% to $12 million.
“In financial year 2018, we have significantly invested in and improved our customer offering,” said founder and CEO Ruslan Kogan.
“We now operate in more industries than ever with a very compelling offer in each industry.
“While earnings from the business have more than doubled over the prior year, our consumer offer is now stronger than ever.
“We are focused on maintaining our price leadership position, while delivering growing earnings to shareholders – principally by focusing on digital efficiency and maintaining low overheads.
“We are extremely excited about our pipeline of initiatives that will further enhance our competitive offering in the near future and progress our mission to make the most in-demand products and services more affordable.”
Kogan.com say it expects Kogan Health, Kogan Internet, Kogan Life and Kogan Pet — all launched in the second half of 2018 — to gain traction in 2019.
The company is holding $42.6 million cash and has a bank facility of $10 million.
Kogan.com declared a fully franked final dividend of 6.1c a share, resulting in total shareholder payout of 13c, an increase of 69 per cent.
The company listed on the ASX in 2016 at $1.80 a share. They last traded at $6.50.
Ruslan Kogan owns about half of the company.
The 2018 results in detail: