Kogan’s dip in profit was attributed to the company’s expenses more than doubling across the board.
Kogan’s net profit after tax (NPAT) for the 2021 financial year whittled down to AU$3.5 million, marking an 86% decline compared to its AU$26.8 million performance last year. The nosedive in profit was due to higher freight and inventory costs, with both amounting to almost AU$69 million and AU$35 million, respectively. By comparison, these expenses were more than double those incurred during FY20. The company also had AU$86 million in administrative expenses, which was almost AU$51 million more than last year. Within those expenses were logistics demurrage charges of AU$7.7 million as a result of COVID-related warehousing and supply chain interruptions, AU$15.6 million in equity-based compensation expenses to cover the cost of options awarded to Kogan co-founders Ruslan Kogan and David Shafer, and AU$12 million in provisions for the final payments to acquire New Zealand online retailer Mighty Ape.
