Kogan.com resumes dividend payments after three years

Company News

by Glenn Dyer

Kogan.com (ASX:KGN), a leading online retailer, announced on Monday its return to dividend payments, marking a significant milestone after a three-year hiatus. The decision follows a resurgence in profitability for the company during the six months leading up to December.

The online giant had last distributed dividends in early 2021, amounting to 16 cents per share, before suspending payouts as part of efforts to streamline operations and reduce costs. This move came amidst a challenging period marked by a sales downturn following the initial wave of pandemic-induced lockdowns, which had paradoxically boosted online retail activity.

Despite facing another decline in sales, Kogan.com has managed to bounce back in terms of earnings, signaling a newfound confidence in the company's trajectory and its ability to generate returns for shareholders. The reinstated dividend, set at 7.5 cents per share, underscores this optimism.

Revenue for the period decreased by 10%, falling from AU$275.6 million to $248.2 million compared to the same period last year.

Ruslan Kogan, the founder and CEO of Kogan.com, expressed optimism about the company's future prospects in a statement released on Monday. "While our business transformation to a more efficient, platform and software-based model is in its early days, it's promising to see that it's starting to pay dividends," he remarked.

Kogan highlighted recent initiatives aimed at enhancing the company's offerings and driving growth, including the launch of Mighty Ape's first vertical, Mighty Mobile, and the introduction of an Advertising Platform to support sellers on the Marketplace. He emphasized the company's commitment to delivering value to both shareholders and customers, particularly through initiatives such as Kogan FIRST Subscribers.

"All these and more help us run a better business for you, our shareholders, while creating the best value for millions of customers," Kogan stated. "Kogan.com is about to turn 18, and I've never been more confident about the outlook for our business and its ability to deliver remarkable value."

The announcement of resumed dividend payments comes as Kogan.com approaches its 18th year in operation, marking a pivotal moment in its ongoing evolution as a key player in the e-commerce landscape.

Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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