Kogan adds $10 million in profits as retail portfolio, customer base grows

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Kogan adds $10 million in profits as retail portfolio, customer base grows
Ruslan Kogan, Kogan.com

Online retailer Kogan almost quadrupled its profits in the last financial year thanks to growth across all of its product divisions, customer base and the addition of new verticals.

The company brought in $14.1 million in net profit after tax in the 12 months ending 30 June, compared to last year’s $3.7 million, while revenue was up 42 percent to $412.3 million from last year’s $289.5 million.

The active customer base grew 45 percent to 1.39 million, compared to just under 1 million in 2017.

New vertical Kogan Mobile saw a 233 percent year-on-year growth in gross profit, posting $12 million for the period. Newer verticals Kogan Insurance and Kogan Internet collectively had a gross profit of $800,000.

“We have significantly invested in and improved our customer offering. We now operate in more industries than ever with a very compelling offer in each industry,” Kogan chief executive Ruslan Kogan said.

“While earnings from the business have more than doubled over the prior year, our consumer offer is now stronger than ever."

He added that the company is focused on maintaining its price leadership position while remaining profitable by focusing on digital efficiency and maintaining low overheads.

“We are extremely excited about our pipeline of initiatives that will further enhance our competitive offering in the near future and progress our mission to make the most in-demand products and services more affordable,” Kogan added.

Kogan expects to see further growth from Kogan Mobile and that its new verticals will gain traction in the upcoming financial year and boost revenues and profits further.

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