Kogan.com Ltd (ASX: KGN) shares have started trading on Monday in the green after the company posted its results for the first half of FY25.
Shares in the online retailer are up more than 1% to $4.56 apiece as investors make sense of the half-yearly accounts.
Let's see what the company posted.
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Kogan share price jumps on H1 FY25 results
Here are the key takeaways from Kogan's 1H FY25 results:
- Group gross sales were up 10% and reached $492.5 million
- Kogan.com's gross sales numbers lifted by 15.4%, and revenues by 22% compared to last year
- Active customers grew 9.4%, surpassing 3 million by 31 December
- Gross profit rose by 18% to $106.0 million, which resulted in a gross margin of 38.9%
- Adjusted pre-tax profit increased to $25.3 million, a 17% jump year over year
- Net profit was up 19% to $10.3 million
- The company declared an interim dividend of 7 cents per share
What else happened in 1H FY25?
Kogan shares had a mixed performance in H1 FY25, but the business itself had several notable takeouts.
Its Kogan Products division grew by 22% over the year, thanks to "improved inventory health and improved product ranging".
It also booked revenue growth of 17% in its Kogan Verticals segment, which includes Kogan Mobile and Kogan Energy.
Meanwhile, its namesake business, Kogan.com, had gross sales of almost $415 million, up 15% from the prior corresponding period.
Aside from declaring the interim dividend of 7 cents per share, the company also repurchased $7.2 million of its own shares during the half.
It left the half with more than $67 million in cash on its balance sheet. This may or may not impact Kogan shares as it works its way through inventories in the second half.
What did management say?
Kogan's Founder and CEO, Ruslan Kogan, mentioned the company's growth and said it had "built on that momentum" during the half.
Having returned the Company to profitability in FY24, I'm pleased to report today that we have built on that momentum and returned the business to strong sales growth in 1HFY25. This was achieved through disciplined execution, operational efficiencies, and strategic initiatives that we expect will continue to drive sustainable growth into the future.
As our customers continue to navigate the ongoing cost-of-living crisis, we are committed to easing the burden by offering market-leading prices on the most in-demand products and essential services. By leveraging our scale and strong supplier relationships, we deliver remarkable value. From everyday essentials to the latest technology and exclusive member benefits, we remain focused on helping our millions of customers live their best lives.
What's next?
Management didn't provide formal guidance, but it did note several growth figures since the start of January 2025.
These include group gross sales up 25% compared to this time last year, underscored by a 31% growth in Kogan.com sales.
Two of its long-standing board members also intend to retire at the upcoming annual general meeting (AGM).
Kogan says it is currently in search of two non-executive directors to fill the roles.
Kogan shares snapshot
Kogan shares have opened the session in the green today after the company posted its earnings for H1 FY25.
Zooming out, the stock is down more than 26% over the past year of trade.
