Kogan.com (ASX:KGN) jumps on rising quarterly sales

Online retailer Kogan.com (ASX:KGN) reported 330.5 million gross sales in the September quarter, up 21.1 per cent year on year and up 23.2 per cent quarter on quarter, driven by Kogan First memberships and changes to its inventory.

During the quarter, Kogan advised that it focused on further scaling the Kogan Marketplace and Kogan First loyalty program, improving logistics and customer service, and driving synergies through the integration of Mighty Ape. It notes that these initiatives underpinned growth in Kogan.com’s active customer base, which grew 30.7 per cent year on year and 4.5 per cent quarter on quarter to 3,351,000 customers. In particular, Kogan First members grew 171.1 per cent year on year and 64.4 per cent quarter on quarter to 197,000 members. 

While profit declined 1.7 per cent year on year, it was up 31.6 per cent quarter on quarter to $52.5 million. Earnings before interest, taxes, depreciation and amortisation for the quarter reached $10.8 million.

The company notes that they also resolved previous inventory pressures, and closed a number of overflow warehouses. The reduction in inventory levels led to the company reducing its warehousing costs and delivering an average variable cost saving of $0.8 million per month in September quarter, compared to the prior quarter. At the end of the period, the company’s inventory had reduced by 14.7 per cent to $194.3 million.

“When it comes to delighting our customers, we set a very high standard for ourselves, and I am proud of the way the Kogan.com team has continued to deliver on our mission of making the most in-demand products and services more affordable and accessible. While overcoming many challenges, the Kogan.com team has continued to deliver strong growth while investing in the future of the business and incubating new ways to deliver more value to our customers over the long term,” said CEO Ruslan Kogan.

Shares in Kogan.com are trading 6.1 per cent higher at $11.60.