Kogan Marketplace reaches $220m in gross sales

ASX-listed Kogan.com has revealed that its third-party reseller platform, Kogan Marketplace, has reached more than $200 million in gross sales for the first time.

For the first half of the 2022 financial year, Kogan Marketplace reported $221.1 million in gross sales, a 28.7 percent year over year increase from $171.8 million.

The bump also contributed to overall gross sales of $698 million for the period, up 9 percent year over year.

The increase in gross sales comes despite impacts from the “continuing supply chain interruptions” as a result of the current COVID-19 situation and associated fluctuations in demand. Gross profit however took a 4 percent year over year decline to $112.4 million.

Operational costs also increased due to the interruptions as logistics costs increased, but also due to a bump to its marketing spend during the period.

Adjusted EBITDA, which removes non-cash items from the baseline EBITDA, was at $21.7 million, down 58 percent from $51.7 million in the first half of FY2021.

For the overall Kogan.com Group business, active customers grew 10 percent year over year to 4 million, including 757,000 from NZ subsidiary Mighty Ape.

“Over four million Aussie and Kiwi shoppers have recently experienced the choice, value, and delivery benefits of the Kogan.com Group,” Kogan.com chief executive Ruslan Kogan said.

“We have continued to re-invest in our customers through the Kogan First loyalty program to offer the best deals on a wide range of products, delivered quickly and efficiently.

“After launching late last year, Kogan Delivery Services is already making an impact with more than 100,000 orders delivered directly to customers since launch. As always we’re obsessed with the long term, and our ever-improving customer experience continues to underpin business success.”

In December 2021, Kogan.com announced it has sold domain name bitbuy.com to Canadian cryptocurrency trading platform Bitbuy for $1.5 million and potentially up to CAD$2.8 million in equity in Bitbuy parent First Ledger.

Both companies also signed an advertising agreement where Kogan.com will provide marketing support for the platform’s launch in Australia.

Kogan.com executive director David Shafer at the time said, “The domain sale not only delivers returns for Kogan shareholders but also provides an opportunity to benefit from Bitbuy’s future success in the crypto business abroad and potentially in the Australian market.”