Kogan.com Ltd. · ASX:KGN
Kogan.com — H1 FY2024 Earnings Presentation
30 slides from Kogan.com's earnings presentation, Feb 26, 2024
Slide 1: 1HFY24 Results Presentation
1HFY24 Results Presentation 26 February 2024
Slide 2: Important notice
Important notice. This disclaimer applies to this Presentation and the information contained in it (the “Presentation”). By reading this disclaimer you agree to be bound by it. Important notice and disclaimer: This Presentation contains a general summary of the activities of Kogan.com Ltd (the Compa
Slide 3: CEO update
CEO update. Ruslan Kogan Founder, CEO and Executive Director 3
Slide 4: 1HFY24 Kogan Group highlights
1HFY24 Kogan Group highlights. Strong operating leverage delivers growth in profitability. Business model o The transformation of the Kogan.com business model continued to progress, with Platform-based Sales1 contribution increasing to 63.0% of Kogan.com (excluding Mighty Ape) Gross Sales2 during th
Slide 5: 1HFY24 Kogan Group highlights
1HFY24 Kogan Group highlights. Strong operating leverage delivers growth in profitability. Cost of doing o Continued cost efficiency initiatives delivered a reduction in Operating Costs of 18.4% on the pcp. These business initiatives largely revolved around logistics, services contracts and internal
Slide 6: 1HFY24 Kogan Group highlights
1HFY24 Kogan Group highlights. Strong operating leverage delivers growth in profitability. Strong The Kogan FIRST program continued to deliver remarkable value to our most loyal customers. Kogan FIRST performance Subscribers5 grew to over 466,000 as at 31 December 2023, representing 15.3% growth Y
Slide 7: 1HFY24 Kogan Group results
1HFY24 Kogan Group results. We have delivered on our promise to return the Group to strong profitability. $m 1HFY23 1HFY24 Var (%) Gross Sales8 472.9 446.6 (5.6%) Revenue 275.6 248.2 (9.9%) Gross Profit 62.9 89.5 42.2% Gross Margin 22.8% 36.1% 13.2pp/57.9% Variable costs9 (35.9) (36.1) 0.6% Fixed co
Slide 8: Kogan.com Platform-based Sales
Kogan.com Platform-based Sales. 10 We continued to grow the contribution from our Platform-based Sales, delivering higher quality earnings and increased profitability. Platform-based Gross Sales contribution 10,11 63% 57% 48% 38% 36% 27% 4% 5% FY17 FY18 FY19 FY20 FY21 FY22 FY23 1HFY24 As Kogan.com c
Slide 9: Delighting our customers
Delighting our customers. We have maintained a significant proportion of repeat shoppers across the Group, demonstrating the strength of our much loved brands. Kogan Group Active Customers Proportion of Group Repeat Customers 12 69.0% 68.0% Kogan Group Repeat Customers (%) 63.3% 2,744,000 54.0% Grou
Slide 10: Marketing proficiency
Marketing proficiency. Increased ROI on marketing while maintaining a high proportion of owned & earned traffic. Group Marketing ROI 1HFY24 Group Traffic - Owned & Earned vs Paid 32.6 Owned & Earned Source× Ø Direct website traffiÙ 18.9 Ø Direct App traffiÙ ($) ($) 34% Ø Brand searcheÓ 9.7 Ø Other o
Slide 11: Kogan FIRST
Kogan FIRST. Free Exclusive Rewards Everyday Priority shipping prices credits discount Customer service Double digit growth in the program as Subscribers demonstrate increased buying behaviour. Kogan FIRST Subscribers 15 Kogan FIRST contribution 16 130 .7% CAGR since 1HFY20 ▲ 500,000 5. % 1 3 62 .9%
Slide 12: Kogan Verticals
Kogan Verticals. Revenue from Kogan Verticals collectively grew 25.6% on the pcp. Kogan Mobile Australia Kogan Mobile New Zealand Kogan Insurance Kogan Internet 26.0% 131.0% 136.8% 8.8% 1.1 0.5 0.3 0.4 6.5 Revenue ($m) Revenue ($m) Revenue ($m) Revenue ($m) 5.1 0.5 0.1 1HFY23 1HFY24 1HFY23 1HFY24 1H
Slide 13: Financial update
Financial update. David Shafer CFO, COO and Executive Director 13
Slide 14: Kogan Group 1HFY24 P&L
Kogan Group 1HFY24 P&L. We have delivered a half of strong profitability. $m 1HFY23 1HFY24 Mvmt % Gross Sales 472.9 446.6 (5.6%) Revenue 275.6 248.2 (9.9%) Cost of sales (212.6) (158.7) (25.4%) Gross Profit 62.9 89.5 42.2% Gross Margin 22.8% 36.1% 13.2pp/57.9% Variable costs (11.6) (9.6) (17.9%) Mar
Slide 15: Key drivers of Kogan Group performance
Key drivers of Kogan Group performance. Our 1HFY24 results illustrate the high margin business model we built over many years. Gross Sales & The Company recorded Gross Sales of $446.6 million and Revenue of $248.2 million. The decline in both can be attributed to Revenue the strategic transition t
Slide 16: Key drivers of Kogan Group performance
Key drivers of Kogan Group performance. Our 1HFY24 results illustrate the high margin business model we built over many years. Product Division The Product Division, being our Exclusive Brands and Third-Party Brands, Revenue declined by a collective 25.8% on the pcp. A key factor to the performanc
Slide 17: Key drivers of Kogan Group performance
Key drivers of Kogan Group performance. Our 1HFY24 results illustrate the high margin business model we built over many years. Mighty Ape We delivered Gross Sales of $87.1 million in the six-month period to 31 December 2023, remaining relatively flat in comparison to the pcp.i Improved profitabi
Slide 18: Key drivers of Kogan Group performance
Key drivers of Kogan Group performance. Our 1HFY24 results illustrate the high margin business model we built over many years. People & Other ~ The value of Equity-based Compensation reduced significantly on the pcp following the vesting of the Executive Remuneration Costs Options granted during the
Slide 19: 1HFY24 Gross Profit by Business Division
1HFY24 Gross Profit by Business Division. Kogan FIRST is now the largest contributor of Gross Profit for the Group. Advertising income is being driven by the new Advertising Platform and is expected to grow quickly. 1HFY24 Gross Profit contribution Advertising income Kogan Money 1.7% 1.3% Third-Part
Slide 20: Kogan Group Operating Leverage
Kogan Group Operating Leverage. The Group is now exceeding historical operating leverage across multiple metrics and has returned to positive margins at the bottom line. 1HFY19 1HFY20 1HFY21 1HFY22 1HFY23 1HFY24 Revenue 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Gross Margin 19.5% 22.7% 28.4% 25.8% 2
Slide 21: Mighty Ape
Mighty Ape. Significant projects were delivered during the half that are expected to have long term benefits. 25,000 Mighty Ape Primate Subscribers Mighty Ape Financials 20,000 A$m 1HFY23 1HFY24 Mvmt % Gross Sales 87.0 87.1 0.1% 15,000 Revenue 86.4 85.619 (1.0%) Gross Profit 21.6 22.5 4.3% Gross Mar
Slide 22: Kogan Group Balance Sheet
Kogan Group Balance Sheet. We completed the 1HFY24 with a strong Balance Sheet. $m Dec-22 Dec-23 CURRENT ASSETS The Business continued to maintain a strong Balance Sheet as at Cash 85.0 83.3 Trade and Other Receivables 9.6 10.1 31 December 2023. Inventories 98.3 68.3 The Balance Sheet was underpinne
Slide 23: Kogan Group Cash Flow Statement
Kogan Group Cash Flow Statement. A strong cash balance with no external debt. Cash flows from Operating Activities 1HFY23 1HFY24 Receipts from customers 295.4 257.3 We completed the half with $83.3 million in cash with no external Payments to suppliers and employees (226.0) (204.6) debt. The half in
Slide 24: 2HFY24 Trading Update & Outlook
2HFY24 Trading Update & Outlook. Ruslan Kogan Founder, CEO and Executive Director 24
Slide 25: 2HFY24 Kogan Group trading update and outlook
2HFY24 Kogan Group trading update and outlook. Overvie? 8 Consistent with prior years, the Company will not be providing earnings guidance. However, it will provide regular business updates during the year 8 January 2024 unaudited management accounts showed Adjusted EBITDA of $4.9 million. In 2HFY24
Slide 26: Interim Dividend
Interim Dividend. The Board has declared a fully franked Interim Dividend of 7.5 cents per share. The Dividend Reinvestment Plan (DRP) will apply to the Interim Dividend at a 2.5% discount to the 5-day volume weighted average price of shares sold on the ASX from the trading day prior to the record d
Slide 27: Glossary
Glossary. 1HFY2x: the 6 months ended 31 December 20xx. Adjusted EBITDA: earnings before interest, tax, depreciation and amortisation and excludes unrealised gain/(loss), equity-based compensation and one-off non-recurring items. Refer to Annexure 2 of this Presentation for a detailed reconciliation
Slide 28: Glossary
Glossary. Kogan Marketplace: a platform launched in 3QFY19 for sellers and buyers to complete transactions on Kogan.com, with commission-based Revenue being earned by Kogan.com. Kogan Mobile Australia: launched in 2QFY16, vertical offering pre-paid mobile phone plans available online using Vodafone’
Slide 29: Annexure 1
Annexure 1. 1HFY24 Revenue by Business Division. 1HFY23 1HFY24 $m Revenue Revenue Variance (%) Exclusive Brands 105.2 79.2 (24.7%) Third-Party Brands 50.9 36.6 (28.0%) Product Division 156.1 115.9 (25.8%) Kogan Marketplace 12.8 12.3 (3.3%) Mighty Ape 86.4 85.5 (1.1%) Kogan FIRST 10.8 22.7 109.7% Kog
Slide 30: Annexure 2
Annexure 2. Reconciliation to Kogan Group Adjusted EBITDA and Adjusted NPAT. $m Unadjusted Unrealised loss Equity-based compensation Adjusted Adjusted EBITDA, Adjusted EBIT and Adjusted NPAT are Revenue 248.2 248.2 measures of the underlying performance of the Business, they Cost of sales (158.7) (1