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Highlights

  • Increased wages in September 2024 are expected to boost discretionary spending  and is likely to benefit Kogan.com.
  • In FY24, adjusted net profit after tax (NPAT) reached AUD 21 million, compared to a loss of AUD 4.3 million in FY23.
  • In FY25, the company anticipates revenue growth, fuelled by platform-based sales and improved operating leverage.

Kogan.com Ltd (ASX:KGN) is an ASX-listed company which operates a portfolio of service and retail businesses. The company is likely to benefit from September 2024 wages and salaries data released by the Australian Bureau of Statistics (ABS) on 20 November 2024.

In September 2024, wages and salaries increased by 3.9% MoM to an all-time monthly high of AUD 103.7 billion. Notably, all 19 industries recorded a rise in wages and salaries paid by employers and the rise was even higher for industries which paid periodic bonuses in September. The data is expected to boost discretionary spending on the back of higher consumer confidence which correlates with robust job markets and stable economic growth.

Recent financial performance

In the financial year 2024 ended 30 June 2024 (FY24), the company recorded 6.1% YoY drop in its revenue to AUD 459.7 million, underpinned by lower sales of goods during the period. The period saw 23.3% YoY increase in its gross profit to AUD 168.4 million, supported by the increase in platform-based sales.

In FY24, adjusted net profit after tax (NPAT) reached AUD 21 million, compared to a loss of AUD 4.3 million in FY23.

Company outlook

In FY25, the company expects to see revenue growth, underpinned by increased contribution from platform-based sales. The revenue growth is expected to be backed by the expansion of verticals, improved operating leverage and gross margins and the launch of new advertising platforms.

Moreover, the rollout of the Mighty Ape marketplace along with its mobile application is likely to boost earnings growth in FY25.

Share Performance of KGN

KGN shares closed 4.63% higher at AUD 4.97 apiece on 25 November 2024. In the past one year, KGN’s share price has increased by 3.54%, and in the three months, the share price has increased by nearly 14.52%.

52-week high of KGN is AUD 8.73, recorded on 13 March 2024, and 52-week low is AUD 3.98, recorded on 8 August 2024.

 

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 25 November 2024. The reference data in this report has been partly sourced from REFINITIV.