Kogan.com builds on online surge during pandemic

Online retailer Kogan.com says sales growth is accelerating in the pandemic, with over 100,000 new customers in June.

Ruslan Kogan, founder and CEO of Kogan. Bonuses will reward senior executives for the rise in sales.

Online retailer Kogan.com says the strong growth in sales it enjoyed after the coronavirus pandemic hit in March has accelerated through May and June.

In a market update, it said said it had put on more than 100,000 new customers in June alone, as many shoppers favoured online retailing over going to shopping malls.

It also comes after the Federal Court last week upheld a ruling that Kogan breached consumer law in 2018 when it offered a “tax time” promotion to shoppers where actually many product prices had been increased before a discount was offered. Kogan is facing millions of dollars in penalties for the misleading behaviour.

In its update, Kogan said gross sales had grown by more than 95 per cent and profit was up by more than 115 per cent in the fourth quarter, compared to the same period last year.

Kogan, whose shares have almost tripled since the global share market downturn in March, said adjusted EBITDA​ grew by more than 149 per cent.

During the year active customers grew to 2.18 million as at June 30, 2020, with an incremental 109,000 customers in the month of June.

June 2020 gross sales topped $94m, gross profit exceeded $17m and adjusted EBITDA​ was more than $7.9m, the company said.

Kogan says senior staff will benefit from the rise in sales and profits, with the annual short-term incentive bonus pool at around $1.1m.

This is on top of the near $100m in options the board has recommended to shareholders be awarded to chief executive Ruslan Kogan and chief financial officer David Shafer.

Mr Kogan said business was booming.

“The thing I love about running an e-commerce company is that we operate in one of the most transparent and competitive industries.

“We’ve been increasing competition for Australian consumers 24/7 for 15 years — all our prices and specifications are publicly advertised every second of the day.”

Kogan shares closed up 2.4 per cent on Tuesday at $17.75, giving it a market capitalisation of $1.87bn.