Kogan added 200,000 more customers as profit quadruples in H1 2018

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Kogan added 200,000 more customers as profit quadruples in H1 2018
Ruslan Kogan, Kogan

Kogan has upped its profits for the first half of the financial year after adding 211,000 more customers and renewing investments in the period.

The online retailer posted $8.3 million in statutory net profit after tax in the six months leading up to 31 December 2017, up 124 percent from $3.7 million in the same period last year.

Revenue also grew to $209.6 million for the period, up 46 percent from $143.9 million in the half-year ending 31 December 2016. Comparatively, Kogan posted $289.5 million in revenue in the full 2017 financial year.

Kogan's results signal its resilience in a period that saw online retail king Amazon.com arrive on Australian shores. Amazon finally opened in December amid much hype, though it was met with a tepid reception shortly after.

“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 chief executive Ruslan Kogan said.

“The Kogan.com team is executing our long-term strategy with precision and delighting our customers along the way.”

The company said the increase in revenue allowed for renewed investment in both inventory and marketing, expanding its product offering and boosting growth in all product divisions.

Kogan Mobile, in particular, grew 341 percent in the period, contributing 11 percent of total gross profit, compared to 7 percent in the previous corresponding period.

“Our consumer offering is always improving and we continue to exceed customer expectations as our business grows,” Kogan said.

“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.”

He added that the business was “in the best shape it’s ever been” and the team was looking forward to its pipeline of initiatives to further enhance its consumer offering.

The company’s forecast that the pace of growth will continue into the second half of the 2018 financial year, particularly with the launch of Kogan Health, Kogan Internet, Kogan Life and Kogan Pet.

“We are looking to the future with confidence and are excited about the opportunities that lie ahead,” the company stated.

Kogan has also seen its share price quadruple to $6.75 at the end of last year due to its 2017 financial year results. As of 10:11 am today, the price is up at $8.02 per share.

It also announced a new $399 13-inch convertible laptop, the Atlas C300, last month at CES 2018 in Las Vegas.

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