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Kogan Shares Tumble After Q4 Results

UPDATE – Shares in Kogan.com have plummeted over 12% this afternoon [to 7 month lows], following results dubbed ‘underwhelming’ by some analysts.

Earlier today, Kogan.com announced a whopping 46.1% increase in Q4 revenue, triggered by the continued growth of online shopping, and heightened marketing activities from Amazon Australia.

For the quarter ending June 30th, the company produced net operating cash flow of $24.53 million – ending 4QFY18 with cash of $41.99 million.

By comparison, Kogan.com ended 3QFY18 with $19.3 million cash.

By the end of Q4, inventories totalled $50.2 million (with $40.4 million in warehouses and $9.8 million in transit) – a notable $4.5 million decrease since March 31st.

Kogan.com asserts it’s in a “strong financial position” with access to a $10 million bank facility, remaining undrawn as at June 30th.

‘Trade and Other Payables’ notched $47.6 million, representing a $16.8 million increase from March 31st. The company attributes “seasonal impacts” for the rise in trade payables and its consequent impact on operating cash flow.

Founder and CEO, Ruslan Kogan, affirms they’ve finished the financial year with a “strong quarter of continued growth”, remaining on track to execute its “long-term strategy”.

Mr Kogan reasserts his desire to make the “most in-demand products and services” more “accessible and affordable”.

Kogan.com advises accounts are currently being audited, with more detail to be provided in full-year results next month.

Whilst unaudited, Kogan.com claims FY18 revenue is over 40% greater than FY17, which finished with $289.5 million in revenue last year.

The company forecasts FY18 EBITDA growth to be a whopping 90% increase versus FY17.

As at June 30th, Kogan.com claims an active customer base of 1,388,000, compared to 955,000 for the same period last year.

The local e-commerce giant affirms its continued to “strategically invest” in marketing during Q4, with results tipped to provide short-term return on investment.


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