Kogan.com (KGN) H1 2025 earnings summary

Executive summary

• Achieved strong double-digit growth in gross sales, revenue, and gross profit for H1 FY25, led by Kogan.com, while Mighty Ape faced short-term challenges from a major website upgrade but is expected to recover.

• Platform-based sales contributed 64% of Kogan.com's gross sales, driving high-margin, scalable earnings and improved profitability.

• Active customers grew 15.7% YoY to over 3 million, reflecting increased customer engagement and loyalty program success.

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

• Strategic focus on operational efficiency, customer loyalty, and platform-based sales led to market share gains and robust cash flow.

Financial highlights

• Group gross sales rose 10.3% to $492.5M, revenue up 9.9% to $272.7M, and gross profit up 18.3% to $106.0M year-over-year.

• Adjusted EBITDA increased 17.5% to $25.3M (margin 9.3%), and adjusted EBIT rose 21.2% to $19.0M (margin 7.0%).

• Kogan.com segment delivered 27.8% gross profit growth and 66.5% adjusted EBIT growth.

• Operating cash flow was $47.1M, with a period-end cash balance of $67.7M and no debt.

• EPS grew 22.8% to $0.10, and adjusted EPS rose 11.3% to $0.12.

Outlook and guidance

• No formal earnings guidance for H2 FY25, but January 2025 unaudited results show group gross sales up 24.9% YoY, Kogan.com up 30.8%, and Mighty Ape down 6.6%.

• Group adjusted EBITDA for January declined 38.1% YoY, reflecting continued marketing investment.

• Focus remains on market share expansion, operational efficiencies, and long-term profitability, with Mighty Ape expected to rebound.