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Kogan Profits Dive Despite Increased Sales

Kogan.com has posted record revenue and gross sales for the first half of the 2022 financial year, despite gross profit being hit by the ongoing supply chain crisis.

Gross sales for the company grew more than 9 per cent year-on-year to $698 million, with the active customer base passing 4 million, leaping more than 10 per cent from the 3.3 million figure it hit twelve months prior.

Despite this, heavy operational costs and continuing supply chain issues saw gross profit drop 4 per cent year-on-year to $112.4 million.

Inventories reduced from $227.9 million — $191.8 million in warehouse, and $36.1 million in transit — to $196.8 million — comprising $158.5 million in warehouse and $38.3 million in transit — over the six month period ending December 31, 2021.

“Over four million Aussie and Kiwi shoppers have recently experienced the choice, value, and delivery benefits of the Kogan.com Group,” Ruslan Kogan said.

“Every decision and action we take is for our customers, and the world class Kogan team jumps out of bed every morning to create a great experience for online shoppers.

“We have continued to re-invest in our customers through the Kogan First loyalty program to offer the best deals on a wide range of products, delivered quickly and efficiently.

“After launching late last year, Kogan Delivery Services is already making an impact with more than 100,000 orders delivered directly to customers since launch. As always we’re obsessed with the long term, and our ever-improving customer experience continues to underpin business success.”

Share prices plummeted 12.55 per cent this morning, after the announcement.

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