Online retailer Kogan.com (ASX: KGN) has come out on top despite a tough12 months as its earnings surge for the third year in a row.
The e-retail company has posted revenue of $412.3 million, up 42 per cent year-on-year reflecting growth across all product divisions and driven in part by a 45 per cent uplift in Kogan's number of active customers to nearly 1.4 million people.
Kogan.com founder and CEO Ruslan Kogan says the company has expanded its product offering and invested in developing the brand.
"In financial year 2018, we have significantly invested in and improved our customer offering. We now operate in more industries than ever with a very compelling offer in each industry," he says.
"We continue to invest in our brand and drive our growing portfolio of businesses and improve our value proposition."
"I am incredibly proud of the Kogan.com team who are executing our long term strategy with precision and delighting our customers along the way, culminating in Kogan.com being recently voted as Australia's favourite retailer for a second consecutive year."
FY18 marks the first full year that the company's result is not impacted by its IPO with the company posting a statuary net profit after tax of 14.1 million, up 277 per cent year-on-year.
The e-retailer which is a portfolio of retail and services businesses, faced some challenges this year as it was caught in a lawsuit after allegedly infringing on competitor Catch Group's trademark.
The company also saw its shares plunge in June after Kogan's CEO and CFO sold $42 million worth of KGN shares at $7.00 each, and since then shares have struggled to get back anywhere near their previous high of $9.85.
At the time of writing shares in Kogan.com are trading at $6.55 per share.
In the second half of FY18 Kogan.com launched Kogan Health, Kogan Internet, Kogan Life and Kogan Pet which the company expects to gain traction in FY19.
"While earnings from the business have more than doubled over the prior year, our consumer offer is now stronger than ever."
"We are focused on maintaining our price leadership position, while delivering growing earnings to shareholders principally by focusing on digital efficiency and maintaining low overheads."
"We are extremely excited about our pipeline of initiatives that will further enhance our competitive offering in the near future and progress our mission to make the most in demand products and services."
Business News Australia
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