Kogan.com (KGN) H1 2025 earnings summary

Executive summary

• Achieved strong financial growth in 1HFY25, with group gross sales up 10.3% to $492.5M and revenue up 9.9% to $272.7M, led by Kogan.com and supported by all divisions.

• Group gross profit rose 18.3% to $106.0M, with gross margin expanding to 38.9% (+2.8pp).

• Active customers surpassed 3 million, growing 9.4% YoY, with Kogan.com active customers up 15.7%.

• Declared a fully franked interim dividend of 7.0 cents per share and recommenced share buy-back program, reflecting confidence in ongoing performance.

• Operational efficiencies, platform-based sales, and customer loyalty initiatives drove sustainable growth and improved profitability.

Financial highlights

• Revenue: $272.7M (+9.9% YoY); Gross Sales: $492.5M (+10.3% YoY); Gross Profit: $106.0M (+18.3% YoY); Gross Margin: 38.9% (+2.8pp).

• Adjusted EBITDA: $25.3M (+17.5% YoY); Adjusted EBIT: $19.0M (+21.2% YoY); Statutory NPAT: $10.3M (+19.0% YoY); Basic EPS: $0.10.

• Kogan.com adjusted EBITDA margin reached 11.7%; group adjusted EBITDA margin was 9.3%.

• Cash balance of $67.7M and no debt as of 31 December 2024; operating cash flow was $47.1M.

• Inventory increased to $84.0M to meet demand and support trading conditions.

Outlook and guidance

• January 2025 unaudited results: group gross sales $80.4M (+24.9% YoY), Kogan.com gross sales $70.8M (+30.8% YoY), Mighty Ape gross sales $9.6M (-6.6% YoY).

• Group adjusted EBITDA for January was $3.0M (-38.1% YoY), reflecting ongoing marketing investment.

• 2HFY25 expected to see continued top-line growth, strong margins, Mighty Ape recovery, and ongoing capital management.

• No formal earnings guidance provided for 2HFY25.

• Strategic focus remains on market share expansion, operational efficiencies, and leveraging platform upgrades.