Kogan.com has reported a 5.6% year-on-year (YoY) decline in gross sales to $445.4 million for the first half of FY24, as it optimises revenue, focuses on platform-based sales and reduces inventories.

An improving gross margin, supported by sell-through of excess inventory, has helped lift gross profit to $89.5 million – an increase of 42.1% YoY – as the company shifts to a more capital-light business model.

Adjusted EBITDA of $21.5 million reflects a return to profitability compared to $4.4 million in the red in the prior corresponding period. Adjusted EBIT was $14 million compared to $12.7 million in the red in 1HFY23.

The Kogan First loyalty program has grown to over 466,000 subscribers as at 31 December 2023, representing growth of 15.3% YoY and contributing to over 62% of gross sales (excluding Mighty Ape).

The Kogan Advertising Platform, which launched at the beginning of the half, has quickly become a material contributor, achieving over $1.3 million in advertising revenue.

Kogan.com founder and CEO, Ruslan Kogan said, “The past six months have seen Kogan.com go from strength to strength, delivering on multiple projects for our customers and ensuring we continue to offer remarkable value. 

“Growth in Kogan First demonstrates the value we are delivering every day to our customers. We now have over 466,000 subscribers among our millions of customers, who enjoy the many new benefits we’ve introduced to the program. 

“In the face of continued cost-of-living pressures, our team remains dedicated to delivering the best value to support the millions who are feeling the pinch. Having returned the business to a position of stability and strength, our unwavering focus remains on enabling Australians and Kiwis to live their best lives.”