As it delivers solid FY18 results to date.
Kogan has seen a strong start to FY18, based on unaudited management accounts for the quarter ended 30 September, 2017, with revenue growth of 35.9% and EBITDA growth of 37.7% in comparison to the previous corresponding period.
The year-to-date growth numbers up to the end of October have improved further with revenue growth of 36.2% gross margin of 18.4% and EBITDA growth against prior year’s pro-forma EBITDA of 58.3%.
Kogan founder and CEO, Ruslan Kogan said, “Our team is obsessed with delivering value to our loyal Kogan.com customers. Our strategy is underpinned by always exceeding expectations and delighting our community – which now boasts over one million active customers.
“Understanding and serving our customers’ needs is central to what we do. Our customers have high expectations and we strive to exceed them. Our portfolio of retail and services businesses is focused on making in-demand products and services more affordable and accessible for all Australians.”
Amazon will bring more shoppers online
“There is no doubt that the way people buy goods and services in Australia has undergone significant change in the past decade. It is a wave of change that continues with great pace and we are proud to have played a key role in it. Saying that, we operate in a dynamic market and we expect that wave of change to accelerate as commerce in Australia undergoes structural change.
“Online retail is still under-represented in Australia compared to other major developed economies. Today online retail represents about 7.5% of the total Australian retail market. For economies with a large marketplace player such as Amazon or Alibaba, online retail penetration is closer to 20%.
“While Amazon is already a major force in Australia as a top 25 site, the launch of a local presence will undoubtedly bring more shoppers online. With traditional channels facing continued consolidation, the path to market in Australia is begging for diversification. We expect the evolution of the local retail market to drive some significant behavioural shifts – causing customers to rethink how they buy and suppliers to rethink how they distribute their inventory.
“For Kogan.com this represents an opportunity to drive incremental sales through additional platforms and channels – just as we benefit from eBay and TradeMe as a platform for Kogan’s suite of exclusive brands,” Kogan said.