The Australian e-commerce boom has played nicely into the hands of online retailer Kogan.com (ASX: KGN), which today announced it has delivered five consecutive years of growth in sales and earnings.
For founder Ruslan Kogan, the milestone means the retailer has seen growth every single year it has been listed on the ASX after the company celebrated its fifth anniversary of debuting on the boards earlier this month.
As part of a business update released this morning, Kogan.com says trading performance in June 2021 saw an acceleration in gross sales, gross profit and adjusted earnings, ahead of a weaker performance in April and May 2021.
As such, compared to FY20, gross sales grew by more than 52 per cent in FY21, revenue was up by more than 56 per cent, and profit surged by more than 60 per cent.
"In early July we celebrated five years since listing on the ASX, and we are now proud to have delighted millions of customers while delivering five consecutive years of significant growth in sales and adjusted EBITDA (earnings before interest, tax, depreciation and amortisation)," founder and CEO Ruslan Kogan said.
"More customers than ever are turning to Kogan.com for convenience, range and price.
"We are proud to have been able to service more than 3 million Australians during the challenging year behind us, all while expanding our warehousing operations, enhancing Kogan First membership rewards, and rolling out new exciting projects that will further improve delivery times and customer experience in the near future."
Since 30 June 2020, Kogan.com's active customers grew by more than 46 per cent to 3.2 million, and to 764,000 for subsidiary Mighty Ape.
As at 30 June 2021, the company had a net cash position of $12.8 million.
The full year results come after the company announced earlier this year that growing pains were putting the company's earnings under strain as it attempted to keep up with the pandemic-induced boom for online shopping.
Those challenges meant Kogan.com's second half earnings were far less than the preceding half when the company recorded $51.7 million in adjusted earnings (more the company's total earnings for FY20 of $49.7 million).
Today the company said efforts to bring down inventory levels had come "a very long way".
"As is now clear, the company's expectations weren't accurate and a result the company purchased too much stock," Kogan.com said.
"Following the end of the second half, the company can now say that the efforts to bring down levels of inventory have come a very long way, and inventory is approaching the right level for the business.
"The company expects improved efficiency moving forward."
Shares in KGN are up 4.43 per cent to $12.25 per share at 10.05am AEST.
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