Kogan experiences strong growth for the final quarter of FY19

Kogan.com has reported overall strong growth for the final quarter of the FY19, which contributed to a gross profit uplift of more than 12% year-on-year for the second half FY19 . 

Earnings before interest, tax, depreciation, and amortisation (EBITDA) came in at more than 25% higher than for 2HFY19, compared to 2HFY18. For the same period, operating costs for marketing, people, variable costs, and other costs reduced by more than 2%.

"In contrast to what has been reported as a tough retail environment, we have been able to grow the business and earnings while investing significantly in the Kogan.com customer experience and enabling our long term strategy," Kogan.com founder and CEO Ruslan Kogan said. 

In its business update released on Tuesday, Kogan.com said Kogan Insurance commission-based revenues for 2HFY19 jumped by more than 100% compared to 2HFY18.

There was also continued strong growth in Exclusive Brands, which climbed by more than 30% in the second half, compared to the same period last year. 

Following the launch of the White Goods & Built-in Kitchen Appliance category last year, it has become the second largest category for the Exclusive Brands division, Kogan.com reported.

The company also outlined Kogan.com's active customer base had achieved 15.9% year-on-year growth to 1,609,000 as at 30 June 2019, compared with 1,388,000 during the same period last year. 

The company's mobile arm active customer base experienced a 24.4% year-on-year uptick, lower than the 41% that was reported in Q3. Meanwhile commission-based revenues for Kogan Mobile during the second half of FY19 increased by more than 5% compared to the prior corresponding period. 

Kogan Internet, which is less than a year old, experienced the biggest customer base increase of 273% year-on-year, which the company attributed to another strong quarter of promotional activity.

The business update also indicated that Kogan Marketplace, which was launched in 3QFY19, also experienced a strong first full quarter where it expanded its logistics footprint to 13 fulfillment centres. 

Kogan Marketplace has also setup a US-based subsidiary, the company said, with plans to supply wholesale Exclusive Brand products to US-based retailers, and first orders already being received from a large US-based retailer. 

"The launch of Kogan Marketplace is proving to be a transformational step for our business. Marketplace gained momentum during the quarter and we have been overwhelmed by the response from both sellers and customers. Our team is working hard to onboard the backlog of sellers who want to reach the Kogan customer base," Kogan said. 

Looking ahead, Kogan announced the company will be launching new key verticals --  Kogan Credit Cards, Kogan Super, and Kogan Mobile New Zealand -- during the first half of FY20. 

The official launch of Kogan Mobile New Zealand comes after Kogan Mobile expanded offerings to New Zealand in June last year, using the Vodafone NZ network for coverage after signing a partnership agreement.

Kogan Energy will also be launched before the end of calendar year 2019, which is being driven by a new partnership with company that remains unnamed. 

Kogan said these additional verticals will build on the recent launch of Kogan Cars at the end of June. 

The company expects to release its full-year results next month.

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