Kogan Shares Wobble, Full Year Profit Up 277%
Local e-commerce giant, Kogan.com, has continued its growth trajectory, posting full-year net profit [after tax] of $14.1 million, up from $3.7 million last year – a whopping 277.3% increase.
Results have sent Kogan shares down 3.38% by 1.39pm, after soaring 8.92% to $7.08 shortly after market open.
For the year to June 30th, revenues climbed 42.4% to $412.3 million, beating its former guidance for a 40% lift. The results follow $289.5 million booked last year.
Full-year EBITDA notched $26 million – up from $16.5 million in FY17 – with EBITDA margin tipping 6.3%.
Gross margin has jumped 8.9% year-on-year to 19.5%.
Kogan.com claims its “active customer” base has soared 45.3% in the last year to 1,388,000.
For the full-year, gross profit per active customer tipped $58, whilst ‘marketing spend per new active customer’ hit $24.The e-commerce giant claims 68% of its traffic is generated from ‘free’ marketing sources, with 32% derived from paid marketing.
By June 30th, Kogan recorded inventories of $50.2 million, comprising $9.8 million in transit, and $40.4 million in warehouses.
The company affirms over 99.4% of its warehouse inventory is less than 365 days old, with 79.9% less than 120 days old.
For the full-year, operating cash flow before expenditure notched $31.7 million – an operating cash conversion of 122.9%.
The conglomerate has announced a final dividend of 6.1 cents per share [fully franked], generating a total FY18 dividend of 13 cents per share – a notable 68.8% year-on-year increase in full-year dividend.Having more than doubled earnings, Kogan.com claims a market share of around 2% of Australia’s online retail industry.
The company’s ‘exclusive brands’ (i.e. private labelled brands) continues to grow, posting a 39.6% YoY jump in revenue.
As previously reported, earlier this month Kogan.com debuted its new range of budget home appliances, claimed to ‘shake up’ price competition for similar quality goods.
Exclusive brands remains Kogan’s largest contributor of gross profit, contributing 44.2% in FY18.
Kogan Mobile has continued to post strong results, with percentage of gross profit climbing from 7% in FY17 to 14.9%, contributing $12 million in FY18 gross profit.
The company claims Kogan Mobile has onboarded 1% of Australia’s total mobile phone customers, and is on track to hit 2%.
Mobile expansion into New Zealand is currently in the works, with launch scheduled in FY19.
‘Kogan Internet’ has also post growth, contributing $600,000 in full-year gross profit.
Kogan.com has opted against providing a formal FY19 EBITDA guidance, however, a trading update is set to be released at the company’s AGM in November.