Online technology retailer, Kogan (ASX:KGN), has reported 45.7 per cent year-on-year growth in revenue for the six months ending 2017, to $209.6 million, with the company saying that a significant investment in inventory led to growth during the period.
The company reported earnings before interest tax, depreciation and amortisation (EBITDA) of $14.1 million for the period, an increase 93.2 per cent compared to the previous year, reflecting revenue growth and margin expansion.
While Kogan cites its investment in inventory across product divisions as being behind the expansion of the product offering and has helped drive growth, the company also gained a substantial number of new customers during the period, many of which are likely to have come aboard as the result of new offerings.
Kogan smashed through the one million active customer mark late last year and, during the six months ending December last year, it added 211,000 active customers. Kogan gained 336,000 new customers last year alone.
Now, it claims 1.17 million active customers, representing a 40.5 per cent increase from 31 December 2016, driven by growth in the existing Kogan brand, new verticals and strategic marketing initiatives.
Kogan Mobile, for example, achieved revenue growth of 340.9 per cent year-on-year with commission of $4.8 million in the first half.
“I’m incredibly proud of the Kogan.com team and the work they have been doing over the last few years as part of our investment in our infrastructure and our brand to drive our growing portfolio of businesses,” Kogan founder and CEO, Ruslan Kogan, said.
“The Kogan.com team is executing our long term strategy with precision and delighting our customers along the way.
“Our consumer offering is always improving and we continue to exceed customer expectations as our business grows. We are always mindful of the fact that our customers have a lot of choice and we’re humbled by the fact that more and more Aussies are voting for us with their wallets.
“The business is in the best shape it’s ever been and our team is excited about our pipeline of initiatives that will further enhance our consumer offering,” he said.