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Kogan at 3M customers: ‘we’re just getting started’

Kogan at 3M customers: ‘we’re just getting started’

During the six months ending 31 December 2020, Kogan reported gross sales of A$638.2 million.

Ruslan Kogan (Kogan)

Ruslan Kogan (Kogan)

Credit: Kogan

Online electronics retailer Kogan has touted a new record in its latest half-year financials, claiming more than 3 million active customers, with the company’s founder and CEO Ruslan Kogan saying that, despite the milestone, it feels like his company is just getting started.

"We launched Kogan.com to change the retail industry nearly 15 years ago, and we would've been cheering if we helped 3,000 customers that year,” Kogan said of the company that bears his name.

"So even though well over three million customers used Kogan.com in the last 12 months, we feel like we're just getting started. We're not just focused on today, or tomorrow, but how we'll continue to delight all our customers on our 30th birthday.

"This includes significant improvements to our logistics network, speed of delivery, range expansion, and improved competition on our platform to drive even better experiences for our customers,” he added.

During the six months ending 31 December 2020, the Australian listed company reported gross sales of A$638.2 million, up 97.4 per cent on the prior year, and revenue of A$414.0 million, up 88.6 per cent on prior year.

Gross profit, meanwhile, was A$112.9 million, up by 126.2 per cent compared to the corresponding period the prior year, reflecting an increase in gross margin.

At the same time, adjusted earnings before tax, interest, depreciation and amortisation (EBITDA) increased 184.4 per cent, to A$51.7 million, while net profit after tax (NPAT) grew by 164.2 per cent to A$23.6 million.

The latest figures include the contribution of New Zealand-based online retailer Mighty Ape, which Kogan acquired for A$122.4 million in December last year. Mighty Ape is now progressively being integrated into the Kogan Group, the company said.

"The rapidly expanding network effect at Kogan.com means that as we attract more customers, we’re able to make the products and services they need even more affordable and accessible,” Kogan said.

“I love hearing feedback from customers that have shopped with us many times over our 15-year journey about how the experience keeps getting better and better - this is what makes our team jump out of bed in the morning.  

“The investments we’re making into Kogan.com today are to ensure that we can continue to delight millions of customers in more and more ways,” he added.

While the financials appear healthy, the final six months of the year haven’t been entirely blemish-free for Kogan. In December, Kogan was fined $350,000 following action by the Australian consumer watchdog for holding a ‘sale’ that saw hundreds of items cost the same as, or more than, their original price.

In July, the Federal Court of Australia found Kogan had breached the Australian Consumer Law by making false and misleading representations about an end of financial year sale in 2018.

In a proceeding brought by the Australian Competition and Consumer Commission (ACCC), it was claimed that an online Kogan sale from 27 to 30 June 2018 saw some product prices quickly raised by the retailer beforehand, and then dropped afterwards.


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