Kogan limited has announced financial results for the half year ended December 31, 2018 (1HFY19).
After record trading in the peak Christmas trading period, the company reported gross transaction value (GTV) of $277.3 million, up 12.9% on prior year.
Revenue was $231.8 million, up 10.6% on the prior year and gross profit was $45.1 million, up 10.8% on prior year.
EBITDA was $13.3 million, compared to $14.1 million in 1HFY18.
During 1HY19, the company continued to invest in marketing to build the Kogan brand, and in expanding its warehousing footprint, which involved some up-front costs.
As at December 31, 2018, the company had cash of $15.5 million and inventories of $92.9 million, which comprised $21.8 million inventory in transit; and $71.1 million of inventory in warehouse.
92.3% of inventory in the warehouse was less than 120 days old, and more than 99.5% was less than 365 days old.
Kogan.com founder and CEO Ruslan Kogan said the retailer is continuing to focus on expanding the business name.
“In the first half of financial year 2019, we have continued our significant investments in our improved customer offering.
“We now have a nationwide logistics network, enabling us to delight customers all over Australia with faster and more cost efficient delivery options.
“We now operate in more industries than ever with a very compelling offer in each industry.
“We have continued to invest in our brand to drive our growing portfolio of businesses and improve our value proposition.
“The Kogan retail business currently represents around 2% of the Australian eCommerce market – continuing to invest in our brand, and spreading our message, is an important part of our strategy to capture market share.
“2019 has started well, with January unaudited management results showing continuing strong growth and increased operating leverage.”
The company continued to achieve a strong growth in active customers in the last 12 months of 32.2%.
At December 31, the business had 1,542,000 active customers.
Exclusive brands continued to achieve a significant year-on-year growth with an increase of 26.1% on 1HFY18.
These brands represented 50.9% of overall gross profit in 1HFY19.
Partner brands achieved year-on-year growth of 96.5% and represented 27.2% of overall gross profit.
Its global brands division, however, has experienced year-on-year decrease in revenue following the change to GST laws and the apparent avoidance of GST by foreign websites.