Kogan says online ‘retail revolution’ during COVID-19 good for business

Kogan says its online retailing business has benefited from the strong pick up in e-commerce trading during the coronavirus pandemic.

Ruslan Kogan CEO of Kogan says the company is benefiting from the push to online retailing. Picture: Britta Campion

Online electronics seller Kogan says its business has reaped the benefits of the “retail revolution” in e-commerce trading during the coronavirus pandemic.

Kogan posted a net profit of $26.8 million for the 12 months ending June 30, a 55.9 per cent increase compared with financial year 2019.

Its adjusted earnings before tax, interest, depreciation and amortisation rose 57.6 per cent to $49.7 million over the period.

Kogan has also issued a fully franked final-year dividend of 13.5 cent per share.

The company’s chief executive Ruslan Kogan said a record number of first-time customers had visited Kogan’s online platforms due to lockdown measures imposed in April and May stopping people from visiting physical retail stores.

“There is a retail revolution taking place as more and more shoppers learn about the benefits of e-commerce,” Mr Kogan said.

“Once someone discovers the benefits of online shopping, I struggle to see why they would ever go back to the old way of doing things.”

Kogan said its online marketplace had exceeded expectations and enabled the company to scale up in terms of the size of its inventory.

At June 30, Kogan had $146.7 million in cash and had an undrawn debt lending facility of $30 million.

Gross sales for the 2020 financial year were $768.9 million.

Kogan said it would not be providing earnings forecasts for the 2021 financial year.