Kogan has released its trading update for the first half of fiscal 2019, claiming it broke records during the peak Christmas period.
According to Kogan’s latest trading update, the online business reaped the benefits of ongoing investments in logistics, operations and marketing as it recorded double digit top-line and gross profit growth over the last six months.
For the half year ending December 31, 2018, Kogan.com says it achieved a gross transaction value of $277.3 million, up 12.9 percent YOY. Revenue reportedly came in at $231.8 million, representing a 10.6 percent increase on 1HY18, while gross profit was also up 10.8 percent on the previous year to $45.1 million.
In a statement, the Founder and CEO of Kogan, Ruslan Kogan said the company’s ongoing investments in its inventory and customer service is reflected in the company’s recent performance.
“In the first half of financial year 2019, we have continued our significant investments in our improved customer offering. We now have a nationwide logistics network, enabling us to delight customers all over Australia with faster and more cost-efficient delivery options,” he said.
“The Kogan retail business currently represents around two percent of the Australian e-commerce market – continuing to invest in our brand, and spreading our message, is an important part of our strategy to capture market share,” he continued.
Kogan.com also noted that during the half the company formed “long-term partnerships” with Bendigo and Adelaide Bank, Pepper, Citi and Mercer to launch its Kogan Money brand, a vertical it plans to scale in 2019.
The last 12 months also saw the platform add an extra 376,000 consumers to its active customer-base, with its Net-Promoter-Score sitting strong at an average of 59.9.
As mentioned in previous updates, however, Kogan said that revenue from its global brands product division has continued to suffer thanks to changes in GST laws and the “apparent avoidance of GST” by foreign websites.
Looking towards the second half of 2019, Kogan is positive the business will continue to perform.
“2019 has started well, with January unaudited management results showing continuing strong growth and increased operating leverage,” he said.
The business’s unaudited management accounts show revenue growth of 13.1 percent over January and gross profit growth of 19.9 percent.