Kogan.com Ltd (ASX:KGN) Announces 1HFY25 Results
Financial Performance
Kogan.com Ltd (ASX:KGN) has announced its results for the half-year ended 31 December 2024. The Group reported Gross Sales of $492.5 million, an increase of 10.3%, and Revenue of $272.7 million, up by 9.9%. Kogan.com contributed significantly, with Gross Sales rising by 15.4% and Revenue by 22.3%.
Customer and Profit Growth
The Group’s active customers grew to over 3 million, a 9.4% year-on-year increase. Kogan.com saw its active customers rise by 15.7% to 2,345,000. Gross Profit reached $106.0 million, an 18.3% increase, with Gross Margin improving to 38.9%. Kogan.com drove this with a 27.8% increase in Gross Profit and a 1.9 percentage point rise in Gross Margin.
Earnings and Dividends
Adjusted EBITDA grew 17.5% to $25.3 million, while EBITDA rose by 24.8% to $24.2 million, led by Kogan.com’s significant growth. Adjusted NPAT increased by 7.9% to $12.3 million, and Statutory NPAT grew by 19.0% to $10.3 million. The Company declared an FY25 Interim Dividend of 7.0 cents per Ordinary Share. The Group held $67.7 million in cash with no debt as of 31 December 2024.
Executive Comments
Founder and CEO Ruslan Kogan stated, “Having returned the Company to profitability in FY24, I’m pleased to report today that we have built on that momentum and returned the business to strong sales growth in 1HFY25. This was achieved through disciplined execution, operational efficiencies, and strategic initiatives that we expect will continue to drive sustainable growth into the future. As our customers continue to navigate the ongoing cost-of-living crisis, we are committed to easing the burden by offering market-leading prices on the most in-demand products and essential services. By leveraging our scale and strong supplier relationships, we deliver remarkable value. From everyday essentials to the latest technology and exclusive member benefits, we remain focused on helping our millions of customers live their best lives.”
Operational Highlights
The Mighty Ape platform upgrade was completed, supporting future growth. Kogan.com’s divisions, including Kogan Products and Kogan Marketplace, reported significant revenue and Gross Sales growth. The Group’s inventories increased to $84.0 million, reflecting improved trading performance.
Leadership and Board Updates
Daniel Balasoglou resigned as Mighty Ape CFO and CEO, with Robert McEwan set to become Managing Director of Mighty Ape. Board members Greg Ridder and Harry Debney announced their intentions to retire after their terms expire, with the Board searching for new non-executive directors.
Motley Fool contributor Matt Burgess has positions in Kogan.com. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Kogan.com. The Motley Fool Australia has recommended Kogan.com. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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