Kogan.com has recorded a $13 million slip in its marketplace sales to $129.2 million for the first half of FY24 compared to the first half of FY23.
This comes amid a total fall in overall sales of $26.2 million to $445.4 million in the same timeframe.
Outside of its marketplace, which sells fashion and accessories among a larger array of retail goods, Kogan.com also covers energy, mobile, internet, and insurance, handles third-party and exclusive brands, and operates New Zealand gaming marketplace Mighty Ape.
Despite the sales slip in its marketplace, Kogan.com recorded a 61.9% lift in gross profit to $66.9 million for the first half of FY24, and a 241.1% lift in earnings before interest, tax, depreciation, and amortisation (EBITDA) to $15.7 million - both excluding Mighty Ape.
Kogan.com also reported that its platform-based sales contribution across the company, also excluding Mighty Ape, grew to 62.8% of gross sales.
The company grew its cash balance to $83.3 million after investing over $17.2 million for the Kogan.com’s share buy-back during the half, as well as settling the final Mighty Ape tranche payment of $10.9 million in October 2023.
Kogan.com’s inventories have reduced 30.6% year-on-year, now totalling $68.2 million as at December 31, 2023 - comprising $58.1 million in-warehouse and $10.1 million in-transit.
Kogan FIRST, the company’s loyalty program, grew to over 466,000 subscribers as at December 31, 2023, representing growth of 15.3% year-on-year. The membership program also contributed over 62% of Kogan.com’s gross sales - excluding Mighty Ape.
The Kogan Advertising Platform, which launched at the beginning of the half, garnered $1.3 million in revenue, and is expected to continue scaling.
Founder and CEO Ruslan Kogan said the past six months have seen Kogan.com deliver multiple projects.
“In the face of continued cost-of-living pressures, our team remains dedicated to delivering the best value to support the millions of Aussies and Kiwis who are feeling the pinch,” Kogan said.
“Having returned the business to a position of stability and strength, our unwavering focus remains on enabling Aussies and Kiwis to live their best lives.”