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Despite delivering record sales revenue for the first half of FY22, online retailer Kogan.com (ASX: KGN) has seen a big fall in underlying profit as supply chain disruptions take their toll.
Underlying EBITDA dropped by 58 per cent year-on-year, with the company stating it has been “impacted by continuing supply chain interruptions as a result of the current COVID situation and associated fluctuations in demand”.
Kogan’s gross profit of $112.4 million reflects a 4.6 per cent decline compared to the same time last year ($117.6 million). This is despite gross sales revenue surging more than 9 per cent to $698 million, primarily driven by the rapid scaling of its marketplace platform.
Kogan Marketplace achieved $221.1 million in gross sales in the half, up 28.7 per cent year on year. This is the first time that sales had breached $200 million.
The 2020 acquisition of NZ-based retailer Mighty Ape also helped bolster revenue figures, as the division reported a 380 per cent jump in sales for the first half of FY22 ($95.6 million) compared to the same time last year ($19.9 million).
The Kogan group saw the number of active customers increase more than 10 per cent to over four million in the past year with 3.3 million for Kogan.com and 757,000 for Mighty Ape. Kogan First members grew by 176 per cent to 274,000 at the end of 2021.
“We have continued to re-invest in our customers through the Kogan First loyalty program to offer the best deals on a wide range of products, delivered quickly and efficiently,” says Kogan founder and CEO Ruslan Kogan.
“After launching late last year, Kogan Delivery Service is already making an impact with more than 100,000 orders delivered directly to customers since launch. As always we’re obsessed with the long term, and ever-improving customer experience continues to underpin business success.”
Kogan’s total inventories were reduced to $196.8 million at the end of last year, reflecting a 13.6 per cent dip compared to levels at the end of June 2021 ($227.9 million).
Shares in Kogan fell more than 17.5 per cent on the news, before regaining some of their lost ground in late morning trade.
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