Kogan Post Strong Trading Update For Q1FY20
Kogan has today announced its gross sales for the first quarter of the new financial year, following the launch four new vertical business ventures by the electronics seller and assorted services provider.
Gross sales for the first quarter grew by more than 16% compared to the prior year, with gross profits increasing by 28%.
Operating costs were also increased by 3%; however, this can be attributed to the launch of four new vertical business ventures from Kogan.
Kogan exclusive brands revenue grew by more than 35%, though third-party brand revenues declined “materially” primarily due to a decline in handset sales, including Apple and Huawei smartphones.
The growth of the Marketplace also had an impact on handset sales, according to Kogan, with gross sales reaching nearly $25 million, compared to just over $10 million the previous year.
Founder & CEO, Ruslan Kogan, said ‘the first quarter of FY20 saw our team continue to execute [Kogan’s] long term plan to drive better value and choice for [Kogan’s] customers’.
Active customer growth achieved a 14% year-on-year (YOY), reaching a total of 1,653,000 as of 30 September 2019, an increase from 1,450,000 last year.
The company has listed cash totalling $7.2 million, with inventories quoted as $79.4 million, showing $15.2 million of that stock currently in transit.
Kogan also revealed they currently hold no bank debt, though maintain overdrawing facilities of $30 million.
As Kogan continues to push rapidly into its new vertical expansions, the portfolio of retail and services businesses will continue to see strong growth in the coming financial year.