Kogan has returned to strong top-line growth in the fiscal first half, which was fuelled by solid holiday sales.
The company reported gross sales of A$492.5 million (NZ$544.98 million) during the July-December period, a 10.3 per cent increase year-on-year. Revenue also grew 9.9 per cent to $272.7 million ($301.7 million).
On the bottom line, gross profit rose 18.3 per cent to $106 million ($117.3 million) and adjusted EBITDA improved 17.5 per cent to $25.3 million ($27.99 million).
Kogan said its first-half growth was thanks to accelerated positive during the peak retail sales period, which included the Black Friday, Cyber Monday, Christmas and Boxing Day sales events in November and December.
“A strategic decision to invest incremental profitability in marketing and promotional activity from November helped the company to achieve accelerated topline growth,” the company elaborated.
In addition, Kogan launched the Mighty Ape Marketplace in New Zealand and enhanced the brand’s Primate loyalty program.
Although implementation and technology challenges temporarily adversely impacted Mighty Ape sales during the peak period, the issues have since been largely resolved. The company expects the new unified platform to deliver significant long-term benefits for the brand.
In the last fiscal year, Kogan swung to a net profit of $83,000 ($91,839) despite a 6.1 per cent decrease in revenue.