Kogan Shares Down Despite Record Result
Kogan shares have fallen 20% during the past 12 months despite the Company reporting a record sales and profits during the past six months.
At 11.00am Kogan shares had fallen to $6.30 down from Friday’s close.
12 months ago, the shares were worth over $8.00 at $8.08 and at one stage reached a low of $3.38.
According to their latest filings with the ASX Kogan’s gross sales grew by more than 16% over the prior corresponding period.
Gross profits slowed however it was up 9% from first half of FY 2019.
During the first quarter gross profit was outpacing its gross sales with growth of 28% over the prior corresponding period.
According to Yahoo Finance, ne area of its financial performance that improved during the second quarter was its operating costs. Management revealed that they declined marginally over the period.
Combined, this led to Kogan finishing the period with cash of $34.1 million.
CEO, Ruslan Kogan said “We are proud to have delivered another record half in Gross Sales and Gross Profit, all while undertaking significant investments into the future of the business”.
He added “The projects that we have rolled out in 2019 will pave the way for the business over the coming years — these include Kogan Marketplace, Kogan First, Kogan Credit Cards and Kogan Energy. We are investing into building strong customer relationships in these new divisions. We expect these divisions to delight our customers and drive loyalty over many years.”
The Company also reported that customer numbers were up 10% year-on-year to 1,699,000 during the first half.
Mr Kogan was also pleased with the performance and prospects of the Kogan Marketplace business.
“As we introduce new sellers to the Kogan Marketplace, and rapidly grow that division, we are undergoing a period of transition to an e-Commerce company that is no longer constrained by inventory and is capable of infinite growth without additional capital. In the long term, this creates huge benefits to both our customers and our shareholders as we build one of the major e-Commerce marketplaces in Australia and New Zealand,” he added.
In the second quarter the Kogan Marketplace grew its gross sales by more than 44% on the prior quarter.
While he has not commented on the slide in share value he did say “We’re just at the very beginning of seeing the benefits from our major investments in warehousing and infrastructure for faster delivery, in Kogan Marketplace for greater product variety, Kogan First for rewarding loyal customers, and more.”
“We’re just getting started, and we look forward to delighting our customers with the benefits of these strategic investments for years to come,” Mr Kogan concluded.