Kogan’s revenue falls, profit rises amid transition to capital-light business
Kogan’s third-quarter adjusted earnings before interest, taxes, depreciation, and amortisation surged 107.6 per cent to $9 million.
The trans-Tasman online retailer’s fiscal third-quarter revenue fell 2.4 per cent year on year to $105.9 million amid lower inventories as the company transitions into a capital-light business. Gross sales slid 6.2 per cent to $178.3 million.
However, Kogan’s gross profit rose 13.8 per cent to $39 million and gross margin inched higher to 36.8 per cent, thanks to the larger contribution from platform-based sales and improved profitability of in-warehouse inventory sales.
Platform-based sales accounted for 61.6 per cent of gross sales, with the new advertising platform generating $800,000 revenue during the period.
Membership of the company’s Kogan First subscription service grew 16 per cent to more than 472,000.
“I’m excited to announce today that we continue to grow the benefits through the program, launching Kogan Travel hotel deals,” said Kogan founder and CEO Ruslan Kogan. “As of today, Kogan Travel now offers the best value domestic and international hotel stays and packages with exclusive pricing for Kogan First subscribers.
“Our team is committed to delivering remarkable value to millions of customers and help them combat the cost-of-living, so they can live their best lives.”
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