Kogan looks to swoop on e-tailers’ demise
The founder and chief executive of Kogan.com says he’s on the lookout for acquisitions after unveiling strong annual results that smashed expectations.
“Over the last decade there has been a lot of online retailers who have done a great job in raising money building a website and then blow all the money on marketing and building a brand,” Kogan told AAP.
“As a result of that, we see a lot of those falling over in the coming year and that creates an opportunity for Kogan.com.”
He said Kogan.com had the systems, inventory and now the experience, through its $2.6 million Dick Smith acquisition in April last year, in saving businesses.
However, he declined to give any names.
Chief financial officer David Shafer said the company was a bargain hunter and would only buy if the business was good value and earnings accretive.
Surf and sporting goods retailer Surfstitch and homewares and furniture business Temple & Webster are two high-profile and publicly traded loss-making online retailers.
However, Temple & Webster in June said it had trimmed its losses during 2016/17 and expects to post its first annual profit in 2019.
Kogan.com, which sells consumer electronics, general merchandise, food and travel deals, booked a net profit of $3.7 million for the year to June 30, more than quadruple what it made a year ago.
The group, which listed on the share market in July, 2016, has significantly expanded its higher-margin private labelled products which helped drive revenue up 37.1 per cent to $289.5 million.
Access exclusive analysis, locked news and reports with Inside Retail Weekly. Subscribe today and get our premium print publication delivered to your door every week.