Kogan.com has announced its results for the half-year ended 31 December 2024 with the company seeing a return to strong growth and continued profitability.
Founder and CEO Ruslan Kogan said, “Having returned the company to profitability in FY24, I’m pleased to report that we have built on that momentum and returned the business to strong sales growth in 1HFY25.
“This was achieved through disciplined execution, operational efficiencies, and strategic initiatives that we expect will continue to drive sustainable growth into the future.
“As our customers continue to navigate the ongoing cost-of-living crisis, we are committed to easing the burden by offering market-leading prices on the most in-demand products and essential services.
“By leveraging our scale and strong supplier relationships, we deliver remarkable value. From everyday essentials to the latest technology and exclusive member benefits, we remain focused on helping our millions of customers live their best lives.”
Kogan.com produced gross sales and revenue of $414.8 million and revenue of $198.9 million, representing a growth of 15.4% and 22.3%, respectively.
This growth accelerated to 34.4% and 32.2% during the peak November and December trading period, which the retailer attributes to an optimised marketing strategy that delivered increased market share.
The Kogan Marketplace recorded gross sales of $150.8 million and revenue of $14.8 million in 1HFY25, marking a return to strong growth of the platform. Gross sales increased 16.7% on the PCP, while revenue grew 20.2%, driven by an optimised marketing strategy implemented in late October 2024. The positive impact of this strategic shift is expected to continue supporting growth throughout the remainder of this financial year.
The Kogan.com loyalty program continued to deliver value for loyal customers. Subscriber fees grew by 24.2% to $28.2 million. The period also included significant improvements to the Mighty Ape PRIMATE loyalty program, with early results supporting expected strong growth in the medium and long-term.
Kogan.com’s New Zealand subsidiary generated $73.9 million of revenue, gross profit of $20.3 million and adjusted EBITDA of $1.9 million, in the half. These results represent a half that was significantly impacted by technical issues upon the upgrade of its website in late October 2024. The upgrade allowed for the launch of the Mighty Ape Marketplace, enhancement of the Mighty Ape PRIMATE loyalty program and other key improvements that are expected to underpin growth in the medium and long-term.