Kogan's profit almost quadruples on expanded product range

Irving Hamilton
August 19, 2018

Kogan.com net profit after tax was $14.11 million, up 277.3%.

Online retailer Kogan has reported a full profit of $14.1 million, almost quadrupling its $3.7 million profit a year earlier, helped by an expanded product range.

Active customers in the last 12 months were up 433,000 or 45.3% to 1.38 million.

The Australian company's Gross Transaction Value for FY18 was $492.6 million, up 47.3% from $334.5 million in FY17.

Mr Kogan and Mr Shafer "reluctantly" sold 6 million shares in the company (worth $42 million) in mid-June.

The result came as revenue jumped by $122.79 million or 42.4% to $412.31 million.

Kogan.com launched several portfolio businesses in FY18, including Kogan Insurance (which includes Kogan Health, Kogan Pet, and Kogan Life) and Kogan Internet. However, the a year ago has also seen Kogan.com face challenges, including a share price drop just last month in response to issues with the Q4 trading update.

Kogan Mobile was a particularly strong performer, increasing gross profit 233.3 per cent to $12 million.

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"We now operate in more industries than ever with a very compelling offer in each industry", Kogan.com founder and chief executive Ruslan Kogan said.

"In financial year 2018, we have significantly invested in and improved our customer offering", Kogan CEO and founder Ruslan Kogan said.

Kogan noted that the company was focused on maintaining a position of price leadership, while delivering earnings growth to shareholders through digital efficiency and 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".

The company has declared a fully-franked final dividend of 6.1 cents per share, a 60 per cent increase on the 3.8 cents a share it paid a year earlier.

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