Kogan.com (KGN) H2 2024 earnings summary

Executive summary

• Returned to strong profitability in FY 2024 after pandemic-related disruptions, driven by improved operating leverage, higher-margin platform-based sales, and strong growth in loyalty programs.

• Over 2.6 million customers served, with loyalty programs Kogan FIRST and Mighty Ape PRIMATE showing strong subscriber growth.

• Strategic shift to capital-light, recurring revenue streams, including marketplace, verticals, and advertising, contributed to higher quality earnings and customer loyalty.

• Gross Sales and Revenue declined year-over-year, but Gross Profit, margins, and adjusted earnings metrics improved significantly.

Financial highlights

• Achieved AUD 40 million in Adjusted EBITDA, AUD 28.3 million in Adjusted EBIT, and AUD 21 million in Adjusted NPAT for FY 2024.

• Gross profit increased by 23.3% year-over-year to AUD 168.4 million, with gross margin expanding to 36.6% (up 8.7 percentage points).

• Platform-based sales represented 62% of gross sales and contributed over 53% of gross profit.

• Declared fully franked final dividend of AUD 0.075 per share, totaling AUD 0.15 per share for the year.

• Ended FY 2024 with AUD 41.2 million in cash and zero debt.

Outlook and guidance

• No formal earnings guidance for FY 2025; next update at AGM, but regular business updates will be provided.

• July 2024 unaudited accounts showed year-on-year growth in gross sales, revenue, and gross profit, with Adjusted EBITDA of AUD 5.3 million.

• Key initiatives for FY 2025 include launching the Mighty Ape Marketplace, a new mobile app, and further scaling the advertising platform, with ongoing share buy-back planned.

• FY25 expected to see continued strong platform-based sales, improving margins, and further growth in Verticals and Advertising Platform.