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Kogan lifts FY profit 21.9% to $17.2m

Derek Rose
Online retailer Kogan has lifted full-year profit 21.9 per cent to $17.2 million

Online retailer Kogan has lifted full-year profit 21.9 per cent to $17.2 million and says sales have continued to rise since the start of the new financial year.

Revenue for the 12 months to June 30 rose 6.4 per cent to $438.7 million, with the number of active customers rising 15.9 per cent to 1.61 million.

"We've delivered strong growth in the business while we've continued to invest in the future," founder and chief executive officer Ruslan Kogan said on Tuesday.

Kogan's gross sales for the 12 months to June 30 were up 12 per cent to $551.8 million, exceeding the half a billion mark for the first time.

Unaudited gross sales for July were 18.3 per cent higher than in July 2018, and its profit was up 32 per cent.

Mr Kogan said that Kogan's Marketplace for third-party sellers, launched in May, is proving to be transformational for the company.

Kogan has so far realised $1.5 million in commission-based revenues from Marketplace, making the company less reliant on third-party inventory.

Marketplace had $5 million in gross sales in June, and the company is working to onboard a backlog of sellers who want to join the platform.

At 1134 AEST, Kogan shares were up 7.3 per cent to a three-month high $5.62.

Mr Kogan also said that a metric indicating the willingness of customers likely to recommend the company to a friend, had averaged 59.7.

A Net Promoter Score above 50 is considered "excellent," so the result shows Kogan is continually "delighting" its customers, he said.

Chief financial officer David Shafer said the company had been hurt by a change in the GST laws that came into effect July 1, 2018, as many foreign websites apparently haven't complied with the law expanding GST to include imported goods worth less than $1,000.

Apple sales were also down with subdued demand for the company's new iPhone, Mr Shafer said.

Kogan plans to launch Kogan Money Super, Kogan Money Credit Card, Kogan Energy and Kogan Mobile New Zealand this financial year, through partnerships with Mercer, Citi, Powershop and Vodafone, respectively.

"We are leveraging our brand and business assets to form these partnerships, which in turn allows us to present our customers with great value offers in a wide array of services," Mr Kogan said.

Kogan lifted its final dividend by 2.1 cents to 8.2 cents, fully franked.

KOGAN FY19 PROFIT UP 22 PER CENT

* Full-year revenue up 6.4 pct to $438.7 million

* Net profit after tax up 21.9 pct to $17.2 million

* Final dividend of 8.2 cents per share, up 2.1 cents from a year ago.