Despite some PR and share price stumbles in the last financial year, Kogan.com has reported a successful FY18, with doubled earnings for the third year in a row.
Kogan.com today released its financial results for the year ending 30 June 2018, revealing earnings double that of FY17. With a 45.3% rise in Active Customers and revenue growth of 42.4%, the numbers suggest that Kogan.com’s confidence in its future expansion is well placed.
The positive results are not surprising, given the strong growth evident in the company’s Q4 results. However, the last year has also seen Kogan.com face challenges, including a share price drop just last month in response to issues with the Q4 trading update. The overall FY18 numbers represent a positive end to an occasionally troubled year for the company.
Kogan.com attributes its strong year to several key drivers that include brand growth, high-performing ROI on marketing expenditure, YoY revenue increase of 40.5% in its Product Divisions, the continued success of rapidly growing Kogan Mobile, and investment in people.
“While earnings from the business have more than doubled over the prior year, our consumer offer is now stronger than ever,” said Founder and CEO Ruslan Kogan. “We are focused on maintaining our price leadership position, while delivering growing earnings to shareholders – principally by focusing on digital efficiency and maintaining low overheads.”
Kogan.com launched several portfolio businesses in FY18, including Kogan Insurance (which includes Kogan Health, Kogan Pet, and Kogan Life) and Kogan Internet. Just this week, the company also announced a new white goods and appliances range, a clear sign that its disruption will continue into FY19.
“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,” said Kogan.
The Australian company’s Gross Transaction Value for FY18 was $492.6 million, up 47.3% from $334.5 million in FY17. Its gross margin expansion went from 17.9% to 19.5%, and its revenue is $412.3 million, up from $289.5 million. This is the third year in a row that Kogan.com has doubled its earnings.
The Kogan.com Board did not release any formal guidance on predicted FY19 results, but their AGM this November will include an update on trading performance.
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