Trans-Tasman online retailer Kogan has reported a return to adjusted profit during the first quarter, but not by enough to prevent a 69 per cent slump for the full year to 30 June.
Sales for the year were static, up by just 0.1 per cent, to $1.18bn, while adjusted EBITA was $19.1M – down from $61.8M last year and $49.7M the year before.
Significantly, the majority of its EBITA for the latest year came from New Zealand, where it earned $12.2M from its Mighty Ape marketplace. The core Kogan.com operation earned $6.9M, down 87.4 per cent year on year.
However, despite what the company described as tough trading conditions – impacted on both sides of the Tasman by Covid – Kogan’s active customer base has grown to 3,972,000 and its Kogan First loyalty program membership surged by 210 per cent.
Ruslan Kogan, Founder and CEO of Kogan, said consumers don’t want to alter their lifestyle but are happy to shift the way they shop in uncertain times.