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Online retailer grows profit by 130 per cent

Online Marketplace Kogan experienced rapid sales during the COVID-19 lockdown period, with sales in April and May soaring 100 per cent and over 265,000 new active customers.

Kogan.com is now worth more than leading Australian retailers, Myer and David Jones combined.

In a business update released on June 5, Kogan stated that gross sales grew by more than 100 per cent and gross profit tipped to 130 per cent across the fourth quarter-to-date.

This growth brought the business’ total active customer base to 2,074,000 during its fourth quarter to-date, and adjusted EBITDA grew by more than 200 per cent during the same period.

Ruslan Kogan, CEO of Kogan.com, said on social media that it’s great to see Australia’s business leaders acknowledging the rise and importance of ecommerce.

Mathew Stewart, Founder of specialist data, marketing & research consultancy Knowledge Gap, said on social media that what Kogan has done for online shopping, is what Paul Hogan did “for shrimps on the barby” and boosting Australia’s presence across international markets.

Kogan has performed better than any other on the ASX’s All Ordinaries index since the market plunged on February 20, up 140 per cent.

Ruslan Kogan said the group’s 13 distribution centres around Australia were busier than they had ever been.

“There’s definitely a lot of businesses out there that have enjoyed very cosy trading conditions, but customers are voting with their wallets and it’s going to change,” he told The Age.

“The more people that start their purchase experience online, who compare prices and look around…the bigger our business is going to get.”

The company stated it’s focused on making in-demand products and services more affordable and accessible and is a leading Australian consumer brand renowned for price leadership through digital efficiency.

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