Sales at Australian marketplace Kogan.com have surged by over 24 per cent in the four months to April 30 this year, compared to the same time last year.
The platform – which sells a range of lifestyle goods, including apparel and footwear – also recorded a lift in active customers to 2.7 million, up 38 per cent year-on-year.
This performance resulted in a gross profit lift of 16 per cent for the platform, which also drove a lift in marketing and promotional investment of 39 per cent year-on-year, and an adjusted EBITDA of 7.7 per cent.
The lift in sales on Kogan.com pushed an overall lift in sales for the Kogan Group, which also includes New Zealand game and toy e-tailer Mighty Ape.
“The company is pleased that notwithstanding the significant marketing investment at Kogan.com and the ongoing technical challenges at Mighty Ape, it was able to deliver group adjusted EBITDA margins of 5 per cent, which is expected to increase in the coming months as the marketing investments continues to bear fruit, and the technical challenges are progressively resolved,” Kogan Group share in a trading update.
In the four months to April 30, group sales were up 20.2 per cent, with group active customers up 27.3 per cent to 3.4 million.
Group revenue, however, declined 0.7 per cent, with the 8.4 per cent growth in Kogan.com offset by a decline in Mighty Ape.
Gross profit grew 7.3 per cent to $54.2 million, with platform-based sales driving profitability. Gross margin grew 3 percentage points to 39.7 per cent.
Meanwhile, group adjusted EBITDA declined 37.5 per cent to $6.8 million at a margin of 5.0 per cent, largely impacted by Mighty Ape along with the investment in marketing to drive customer growth.
Adjusted EBIT declined 63.7 per cent to $2.5 million at a margin of 1.9 per cent, also impacted by Mighty Ape and marketing investment.