Kogan boosts FY19 profit from expanded product range

Kogan.com has reported a 21.9% increase in net profit for FY19 to $17.2 million as a result of strong sales and customer growth.

The online retail and services company has revealed plans to build on its momentum to start offering superannuation, credit card and energy retailer services.

For the financial year, Kogan reported a 12% increase in gross sales of $551.8 million, which translates to a 6.4% increase in revenue to $438.7 million.

The company increased its active customer base by 15.9% to more than 1.6 million.

Kogan founder and CEO Ruslan Kogan said the company has made significant investments in its platform over the past financial year, which has included increasing the company’s footprint of distribution centres across Australia to 13.

During FY19, the company also significantly expanded its product range, adding unlimited nbn packages, car deals, insurance and home loans to its platform. Kogan plans to start offering super in partnership with Mercer this week, and to introduce credit card and energy offerings by the end of the calendar year.

“We now operate in more segments than ever with a very compelling offer in each segment. We have continued to invest in our brand and customer experience to drive our growing portfolio of businesses and improve our customer value proposition,” Kogan said.

“Financial year 2020 has started well, with July unaudited management results showing continuing strong business growth and acceleration in Kogan Marketplace.”

Image credit: ©stock.adobe.com/au/Orawan

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