Kogan Profit Up 118%, Revenues Soar 45%, Private Labels Strong
Kogan.com has posted a whopping 45.7% jump in half-year revenue, with net profit [after tax] soaring 118.9%, and its active customer base increasing 40.5%.
For the six months to December 31st, revenues notched $209.6 million, with the e-commerce company nabbing 1,166,000 active customers, and 8.5 million “active subscribers”.
Disclosed within its 1HFY18 earnings result, Kogan.com achieved a trading EBITDA of $14.1 million, a notable 93.2% increase compared to the same period last year.
Company net profit [after tax] soared 118.9% to $8.1 million, outperforming its full-year FY17 pro forma NPAT of $7.2 million.
Gross margins climbed 19.4%, improving on an 18% increase recorded last year.Kogan’s “exclusive brands strategy” [i.e. private labels division] notched strong year-on-year growth, jumping 47.3% from last year. The company intends to expand its private label portfolio into 2HFY18.
Company CFO and COO, David Shafer, states revenue growth was “across all product divisions”, whilst noting the “successful implementation” of its exclusive brands strategy.
Shafer reveals Kogan Mobile was one of the “key drivers” of its 1HFY18 results, nabbing a whopping 340% year-on-year growth [with commission] to $4.8 million. It comes as the company touts the strength of the Kogan brand in debuting new verticals.
As at December 31st, Kogan affirms it has a strong balance sheet, with a net cash position of $28.2 million, and inventory levels of $69.8 million.
- $13.8 million inventory in transit
- $56 million inventory in warehouses
- 93.4% of warehouse inventory less than 90 days old
For the period, operating cash flow [before capital expenditure] notched $4.6 million.
Following the results, Kogan.com has posted a fully franked interim dividend of 6.90 cents/per share, up 76.9% year-on-year.Speaking of its stellar half-year earnings results, Founder and CEO Ruslan Kogan affirms the company is in “the best shape it’s ever been”, as it sets it sights on a “long-term strategy”:
“I’m incredibly proud of the Kogan.com team and the work they have been doing over the last few years as part of our investment in our infrastructure and our brand to drive our growing portfolio of businesses. The Kogan.com team is executing our long term strategy with precision and delighting our customers along the way”
“The business is in the best shape it’s ever been and our team is excited about our pipeline of initiatives that will further enhance our consumer offering”.
Concerning its future outlook, the Board is not providing a formal EBITDA guidance for FY18, simply expecting continued brand and market growth in “every portfolio business”.
Kogan Health, Kogan Life, Kogan Pet and Kogan Internet are expected to launch in 2HFY18.
The company affirms 2HFY18 has “started well”, with “further acceleration” in revenues compared to the previous year.