Kogan Continues Growth Despite Inventory Bungle
Kogan has hailed its fifth straight year of growth since listing on the ASX in 2016, with revenue, sales, gross profit, and EBITDA all up over last year in 2021 despite an overstock blunder.
The online retailer saw gross sales increase by 52.5 per cent year-on-year to more than $1.1 billion, revenue increase by 56.8 per cent to $780.7 million, gross profit improve by 61 per cent to $203.7 million, and EBITDA go up 23.1 per cent to $61.1 million.
The company’s active customer base also grew more than 46 per cent since 30 June 2020, to 3,207,000 for Kogan.com and 764,000 for Mighty Ape.
Founder and CEO Ruslan Kogan has trumpeted the results, saying “more customers than ever” are turning to Kogan.
“We are proud to have been able to service more than three million Australians during the challenging year behind us, all while expanding our warehousing operations, enhancing Kogan First membership rewards, and rolling out new exciting projects that will further improve delivery times and customer experience in the near future,” he said.
The numbers aren’t all good news for Kogan, however, with the company admitting it ordered too much stock following high demand during the first half of the 2021 financial year in the mistaken expectation that these levels of demand would continue.
It has since engaged in heavy promotional activities to get rid of the stock, with these promotions – alongside warehousing costs – causing Kogan’s finances to take a hit in the second half. Current inventory stands at $228.1m, with $191.8m in warehouse and $36.3m in transit, with Kogan noting in an ASX statement that it expects “improved efficiency” moving forward.