Kogan hits $289.5 million, boosted by mobile and Dick Smith brands

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Kogan hits $289.5 million, boosted by mobile and Dick Smith brands
Ruslan Kogan

Online retailer Kogan has revealed strong growth revenue and profit growth in its first full year as a publicly traded company.

The company generated revenues of $289.5 million for the 12 months to 30 June 2017, growing 37.1 percent on FY2016, and a net profit of $7.2 million, an 800 percent increase on last year's $800,000. Kogan’s EBITDA was $13.2 million, up 320 percent. The company also closed the year with a net cash position of $32 million and inventory levels of $39.7 million.

Kogan’s customer base is edging closer to the one million mark at 955,000, up 36 percent. The company also boasted 6.5 million active subscribers through retail, travel, mobile, insurance marketplace and NBN brands, as well as through its acquisition of the Dick Smith brand, and partnerships with eBay and TradeMe. 

Revenue growth, which exceeded company forecasts by $48.3 million was largely attributed to the customer growth and active subscribers driven by Kogan Mobile and the relaunch of Dick Smith as an online-only entity in May 2016 after the purchase of its online assets by Kogan for $2.6 million the month prior. 

The company named several other key performance areas including third-party domestic sales, such as Kogan Marketplace, where additional brands and an expanded range of products saw a 51.3 percent growth in this area on last year.

Strong growth in Kogan Mobile was also named as a factor, with the division reaching $3.6 million in sales from both existing and new customer acquisitions.

Kogan chief executive Ruslan Kogan said the strong result reflected the skills and dedication of his team and the growth in the company’s product portfolio and marketing initiatives.

“The company has a strong balance sheet which will allow us to continue to fund growth in our core Kogan Retail businesses, while the continued diversification of our Kogan Portfolio is providing strong cash flows. Our team is very proud of the fact that we’ve managed to build and engineer a business model that is both a high growth and dividend paying company,” he said.

“We will continue to look for opportunities to serve our loyal community of customers with new value-focused offers. In a noisy marketplace, the Kogan brand is recognised for price leadership through digital efficiency. Recent industry awards – in particular, winning the People’s Choice Award at Startrack’s ORIAS – are a testament to this. In FY17 our offer spanned Retail, Marketplace, Mobile and Travel and in FY18 we add Kogan NBN and Kogan Insurance to our portfolio. We are all very excited for the year ahead.”

In 2018 the company expects a continued push on its growth areas as well as the ramping up of its Kogan Insurance division, which launched in partnership with Hollard Insurance company in August. The launch of Kogan Broadband in the second half of FY18 in partnership Vodafone to offer fixed-line NBN services is another focus point for the company moving forward.

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