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Kogan Shares Plummet 17% After Q3 Results

Local e-commerce giant, Kogan.com, has today received a market hammering, with shares plummeting 17.75%, despite a 46.1% YoY increase in third-quarter revenue.

For the three months to March 31st, the conglomerate’s gross transaction value soared 49.8%.

Just last week, Kogan.com expanded into pet and life insurance, after it moved to take on Optus and Telstra with ‘Kogan Mobile’ last year.

Whilst not providing explicit customer numbers, Kogan Mobile pulled in over $3 million in 3Q18.

[Source – Kogan]

The share downturn could appear to be a further reflection of investors moving away from Australian retail operations.

Kogan.com claims to have notched 1,288,000 active customers by March 31st, posting a cash reserve of $19.3 million.

For the quarter, Kogan.com posted a net operating cash flow loss of $625,000.

The conglomerate also has access to a $10 million bank facility, which it affirms remains undrawn.

By March 31st, Kogan.com recorded $54.7 million in inventory, with $9 million in transit, and $45.7 million stored in warehouses.

Kogan affirms inventory has dropped $12.1 million, since December 31st 2017.

Driven by an inventory reduction, Kogan.com has declared $30.8 million in ‘Trade & Other Payables’ – a drop of $20.6 million since December 31st, 2017. Kogan states this reflects a “normal payables pattern” after the peak Christmas period.

Founder & CEO, Ruslan Kogan, asserts the results are another “strong quarter of continued growth”, with continued momentum expected until the end of financial year:

“Kogan.com commenced the new calendar year with a strong quarter of continues growth as we execute our long term strategy. Our team is delighting customer across the board and our portfolio strategy is starting to gain strong momentum”

“The business is poised to continue its growth trajectory into the seasonally strong end-of-financial year quarter”.

Shares in Kogan.com Limited closed 17.75% lower to $7.60.