But the financial markets were seemingly not impressed by Kogan's performance, with the company's share price plunging 23% lower to $6.13 on news of its results before recovering slightly. At the time of writing the share price was on $6.23, with some commentators putting the market reaction down to a slowdown in Kogan's gross profit growth since the end of the first quarter.
Across all of the company’s business, first half gross sales increased 16% year over year, and gross profits increased by more than 9%.
Active customers on the Kogan.com site also increased 10% to 1.7 million as of 31 December 2019 and Kogan says the first half results showed that the business surpassed last year’s half yearly results to record the highest half of gross sales and gross profit on record.
According to Kogan, it was also the highest Black Friday and Boxing Day sales results in the history of the business.
In its statement on Monday, Kogan says its exclusive brands grew by 17% in revenue and gross profit during the half, while Marketplace continued its strong growth trajectory.
In addition, Kogan says its recently launched Kogan credit cards, Kogan energy - and its membership-based online shopping site Kogan First - are growing strongly.
Kogan also highlights other results, including:
- Third-Party Brands declined materially year-on-year due in part to the growth of Kogan Marketplace
- Kogan Mobile Australia grew Active Customers more than 5% as at 31 December 2019
- Kogan Internet grew Active Customers by more than 340% as at 31 December 2019
- Kogan Insurance grew Revenue by more than 40%
- Advertising income contributed more than $2m to Gross Profit
- The Company’s internally developed proprietary marketing system continues to deliver savings, enabling the year-on-year reduction in Marketing Costs of more than 25%
- Overall Operating Costs (Marketing Costs, Variable Costs, People Costs and Other Costs) reduced year-on-year
- There was an unrealised material foreign exchange loss on forward contracts outstanding as at 31 December 2019
- Inventories were $94.2m as at 31 December 2019, comprising $81.1m inventory in warehouse and $13.1m inventory in transit, and inventory turn improved on the prior half
- Cash was $34.1m as at 31 December 2019, and the Company’s debt facility of $30m was undrawn.
Kogan founder & CEO, Ruslan Kogan, said the team are delivering projects that “delight customers and lay the foundation for future growth”.
“We are proud to have delivered another record half in gross sales and gross profit, all while undertaking significant investments into the future of the business. The projects that we have rolled out in 2019 will pave the way for the business over the coming years — these include Kogan Marketplace, Kogan First, Kogan Credit Cards and Kogan Energy.
“We are investing into building strong customer relationships in these new divisions. We expect these divisions to delight our customers and drive loyalty over many years.