Kogan.com has recorded a $4.3 million lift in profitability for the third quarter of FY24 to $29.8 million.
This is despite a $10.2 million fall in marketplace revenue to $50.3 million, driving an overall sales slump of 6.2 per cent to $178.3 million.
As well as the marketplace, Kogan also manages exclusive brands, gaming marketplace Mighty Ape, third-party brands as well as services such as telecommunications and insurance.
The profit lift in the last quarter for the Kogan marketplace was also joined by a 159.1 per cent in adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) to $7.7 million. Adjusted operating profit (EBIT) was up by 740.8 per cent to $4.6 million.
Kogan.com CEO and founder Ruslan Kogan said the healthy balance sheet is being driven by its Kogan First loyalty program.
Kogan First subscribers totalled over 472,000 as at March 31, 2024, compared to over 407,000 as at March 31, 2023. The Kogan First membership cost was increased from $99 to $129 on April 8, 2024.
“Kogan First has become the north star for the business, creating immense value for our loyal customers,” Kogan said. “We deliver remarkable value to our loyal members, and in so doing ensure that members come to Kogan first.”
The membership program has also scaled recently to include Kogan Travel hotel deals across domestic and international hotel stays and packages, with exclusive pricing for its members.
“Our team is committed to delivering remarkable value to millions of customers and help them combat the cost-of-living, so they can live their best lives,” Kogan said.
The group’s active customer base was 2,660,000 as at March 31, 2024, consisting of 1,950,000 for Kogan.com and 710,000 for Mighty Ape.
The group’s total cash on hand was $34.1 million, with no external debt, as at March 31, 2024, compared to net cash (after loans & borrowings) of $49.1 million as at March 31, 2023.
This comes after the group completed the Mighty Ape Tranche 4 payment - being the final tranche - of $10.9 million and investing $33.8 million into the company’s share buy-back program over the past 12 months.
Group inventories totalled $71.1 million as at March 31, comprising $61.1 million in-warehouse and $10.0 million in-transit. The inventory balance represents a year-on-year reduction of 9.2 per cent.