Australian etail business Kogan has reported a 9.9 per cent lift in revenue for the first half of FY25, hitting $272.7 million.
Gross sales for the period are up 10.3 per cent to $492.5 million, with the sales boom driving gross profit and earnings. Gross profit for the half was up 18.3 per cent to $106 million, with adjusted earnings before interest and tax (EBIT) up 21.2 per cent to $19 million.
In its trading update today, Kogan said much of the sales growth was driven by the peak retail sales period - covering Black Friday, Cyber Monday, Christmas and Boxing Day sales events.
According to Kogan, the group made a strategic decision to invest incremental profitability in marketing and promotional activity from November, which accelerated topline growth.
From July to October 2024, gross sales were up just 0.4 per cent, which then jumped to 23.8 per cent in November and December. Similar jumps were recorded in total revenue, jumping from 7.8 per cent in the first four months of FY25, to 12.7 per cent in the latter part, with gross profit jumping from 15.3 per cent to 22.5 per cent in the same time frame.
Kogan is a portfolio business, which includes retail and a marketplace, alongside a range of services including insurance, mobile, energy and internet.
Throughout 2024, the group reported a digital shift for its Mighty Ape subsidiary – a gaming marketplace in New Zealand –which went live in late October 2024. This included the launch of the Mighty Ape Marketplace and improvements to its loyalty program.
“However, implementation and technology challenges temporarily adversely impacted Mighty Ape sales and profitability during the peak period,” Kogan reported. “These issues have since been largely resolved, and the new unified platform is expected to deliver significant long-term benefits.