More and more Australians have opted to save money on most products and services during the holidays, according to online retailer Kogan as it posted a rise in half year revenue and profits.
Kogan also recorded its highest Black Friday and Boxing Day sales.
The company added that during the key Christmas sales periods, more Australians than ever shopped at Kogan.com “to save money on the most in-demand products and services”.
“We are proud to have delivered another record half in gross sales and gross profit, all while undertaking significant investments into the future of the business,” said Kogan founder and CEO Ruslan Kogan.
Kogan said the projects that they have rolled out in 2019 will pave the way for the business over the coming years, including Kogan Marketplace, Kogan First, Kogan Credit Cards and Kogan Energy.
“We are investing into building strong customer relationships in these new divisions,” Kogan said. “We expect these divisions to delight our customers and drive loyalty over many years.”
The online retailer posted a 16 per cent rise on gross sales for the first half of FY2020 and a 9 per cent growth in gross profit. Operating costs declined marginally.
Cash at period end was $34.1 million with debt facility undrawn.
Kogan Marketplace continued its strong growth trajectory, the company said while recently launched Kogan Credit Cards, Kogan Energy and Kogan First are growing strongly.
“As we introduce new sellers to the Kogan Marketplace, and rapidly grow that division, we are undergoing a period of transition to an e-commerce company that is no longer constrained by inventory and is capable of infinite growth without additional capital,” Kogan said.
“In the long term, this creates huge benefits to both our customers and our shareholders as we build one of the major e-Commerce marketplaces in Australia and New Zealand.”