Kogan.com (ASX: KGN), an Australia e-commerce platform previously welded in losses due to excessive inventory stockpiling, has made a return to profitability for FY24 after pivoting their business towards a more marketplace-centric model. 

Kogan.com’s revenue declined by 6.1%, reaching $459.7 million compared to $489.2 million in FY23, but this was no concern to the retailer whose gross profit jumped 23.3% to $168.4 million, with a gross margin of 36.6% up from 27.9% in FY23.

The Company’s adjusted EBITDA rose to $40 million, an increase from the previous year’s $6.8 million which the Company attributed to effective cost management and operational efficiency.

CEO Ruslan Kogan said: “FY24 was a milestone year for Kogan.com. Our business returned to a position of profitability and strength, having navigated through the previous two and a half years of turbulence.”

Kogan.com’s loyalty program, Kogan FIRST, now has over 502,000 subscribers, a 25% increase. 

The Mighty Ape PRIMATE program in New Zealand also saw growth, expanding by over 35% to more than 23,000 subscribers and contributed $147.7 million in gross sales, which is a 4.4% decrease from FY23’s $154.6 million. 

The Group now has over 2.6 million active customers.

“We got through this by restructuring and improving our operations, focusing on growing the right areas of our business, rapidly growing platform-based sales, and most importantly, investing in our loyal customer base. This has helped put Kogan.com in its strongest position ever,” added Kogan.

“In response to the ongoing cost-of-living crisis that our customers are facing, we are doubling down on our commitment to affordability and value. This was at the core of our brand when we launched 18 years ago, and we understand the economic challenges our customers are facing. Everything we do is aimed at enabling our customers to live their best lives without having to strain their budgets.” 

Kogan.com’s Board of Directors has declared a fully franked final dividend of 7.5 cents per share for FY24, bringing the total dividend to 15.0 cents per share.

“You’ll see this play out in all our investments and launches going forward. Our team’s obsession with delivering remarkable value for our customers has underpinned the growth of Kogan.com into the top performing Australian eCommerce company for nearly two decades. These efforts are more crucial than ever, and we’re primed to deliver again for our customers in FY25.” Kogan further added.

Looking ahead to FY25, Kogan Group anticipates growth from platform-based sales, improved margins, and expansion of the Mighty Ape marketplace. The Company also expects increased loyalty program adoption and the ongoing share buy-back programs to support future performance.