Kogan's mobile and branded products increase net profit by 20% for FY19

Kogan.com announced on Tuesday that it continued to perform strongly during the 2019 financial year due to growth from its mobile and exclusive brands divisions, reporting its net profit after tax had increased by over 20% to AU$17.2 million.

The company's gross profits were primarily comprised of business from its three main segments -- Exclusive Brands, Third-party brands, and Mobile -- which accounted for 91% of overall gross profits. 

Kogan.com's gross sales was AU$552 million, up 12% year on year, while its gross profits rose 12.5% year on year to AU$90.7 million. 

Its other existing verticals, such as Kogan Internet and Insurance, also experienced growth in FY19.

Kogan.com's mobile and internet businesses both grew their active customer bases, experiencing increases of 24.4% and 273%, respectively. Kogan Insurance also continues to scale, the company said in its results, increasing its commission-based revenue by 144% year on year. 

Overall, Kogan saw its active customer base increase to 1.6 million, a 16% increase year on year.

"In the 2019 financial year, we have continued our significant investments in our improved customer offering. We now have 13 distribution centres, enabling us to delight customers all over Australia and New Zealand with faster and most cost efficient delivery options," founder and CEO Ruslan Kogan said.

"We have also significantly expanded our product range, giving our customers more choice and driving more competition on our platform."

Earnings before interest, tax, depreciation, and amortisation (EBITDA), meanwhile, was AU$30 million, up 15.6% year on year from AU$26 million.

Kogan.com's FY19 result was also boosted by the launch of Kogan Marketplace earlier this year, which achieved AU$1.5 million in commission-based revenues that has been reflected as gross profit.

Looking ahead, the company is expected to expand on these offerings, with Kogan Money Super, Kogan Money Credit Cards, Kogan Energy, and Kogan Mobile New Zealand set to launch in the first half of 2020. 

"Our ambition is to achieve more than 1% market share across each new vertical, we are working hard to achieve this on our existing verticals while launching new ones," Kogan said.

In addition to marketplace, Kogan.com launched its cars and home loans verticals earlier this year.

Kogan.com went public in July 2016.

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