Kogan’s incredible $500 million year
The coronavirus pandemic is wreaking havoc across the retail sector - but online powerhouse Kogan is bucking that grim trend.
The company, which was founded in 2006 by Ruslan Kogan, saw its revenue soar by 13.5 per cent to $497.9 million and net profit 55.9 per cent to $26.8 million in the 12 months to June.
Today's earning announcement also revealed gross sales of $768.9 million, up 39.3 per cent.
Mr Kogan said the company's speedy reaction to the coronavirus crisis contributed to the impressive result.
"The second half of FY2020 was an extremely turbulent and challenging period for the world, the country, and the company. We have built a diversified, resilient business over many years, which enabled us to help Australians in their time of need," he said.
"In the midst of the crisis, our teams mobilised all our resources to ensure our supply chains remained open, our logistics operations continued functioning, and in-demand products remained available for speedy delivery.
"There is a retail revolution taking place as more and more shoppers learn about the benefits of eCommerce."
He said the company was seeing "record numbers of first time customers" who then went on to make "repeat purchases at a 40 per cent faster pace than previously".
"For us this is a very exciting trend that shows that once customers learn about shopping online, they change their ongoing behaviour. Once someone discovers the benefits of online shopping, I struggle to see why they would ever go back to the old way of doing things," he said.
"After almost 15 years of preparation, the revolution occurring in retail represents a significant opportunity for Kogan.com."
He said Kogan Marketplace had been a "standout performer during the year" while the company's loyalty membership base also grew considerably.
Along with the shift towards online shopping during the COVID-19 pandemic, Kogan said another major driver for the impressive result was the company's exclusive brands products which had a revenue increase of 26.4 per cent.
It also gave a nod to a slew of new verticals, including Kogan Mobile, which contributed more than 10 per cent of total growth profit.
Kogan Internet customers also grew 90.9 per cent year-on-year while Kogan Cars, Kogan Credit Cards, Kogan Superannuation, Kogan Energy and Kogan Mobile NZ were also all growing.
Originally published as Kogan's incredible $500 million year