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Kogan.com's rise,
From turbulence to profit,
A milestone year shines.
Kogan.com returns to profit from 2.6m customers, subscribers surge but revenues drop 6.1%
Kogan.com has announced its full-year results for the year ended 30 June 2024, marking a significant turnaround for the the Australian e-commerce giant with a surge in its FIRST subscribers to over 502,000, up from 401,000 in the previous year.
However, the company's gross sales and revenue of $809.0 million and $459.7 million respectively, saw a slight decline by 4.8% and 6.1%. Adjusted EBITDA for FY24 was $40.0 million, a significant improvement from FY23's $6.8 million. Adjusted earnings per share were 20 cents, up from a loss of 4 cents in FY23, and EPS was 0 cents, up from a loss of 24 cents in FY23.
"FY24 was a milestone year for Kogan.com. Our business returned to a position of profitability and strength, having navigated through the previous two and a half years of turbulence," said Ruslan Kogan, Founder and CEO of Kogan.com. He added that the company is doubling down on its commitment to affordability and value in response to the ongoing cost-of-living crisis faced by its customers.
The company's platform-based sales contribution increased to 62% of Kogan.com's gross sales in FY24, up from 57% in FY23. This shift towards platform-based sales is said to have delivered higher quality earnings and improved margins for the company. Gross profit increased by 23.3% to $168.4 million, while gross margin rose to 36.6%, up from 27.9% in FY23.
The Products Division returned to year-on-year revenue growth in the fourth quarter, while FY24 gross profit increased by 39.6% to $39.3 million. The company's verticals achieved another record year of revenue, increasing by 20.5% to $20.0 million.
Kogan.com reported a cash balance of $41.2 million and no debt as at 30 June 2024. Inventories stood at $73.4 million. The company's active customers were 2,609,000, comprising 1,909,000 for Kogan.com and 700,000 for Mighty Ape.
The company's Board of Directors has reinstated a dividend for FY24, declaring a fully franked final dividend of 7.5 cents per ordinary share. This, combined with the interim FY24 dividend, results in a total fully franked dividend for FY24 of 15.0 cents per ordinary share.
