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Kogan Shares Up After 16% Customer Growth

Local e-commerce behemoth, Kogan.com, has reported 2HFY19 gross profit growth of 12% YoY, with EDITDA growth over 25%, and a 2% dip in operating costs – sending shares up over 4%.

Unaudited accounts report cash of $27.5 million, total inventories of $75.7 million [$67.3 million warehouse inventory; $8.4 million inventory in transit], and no bank debt as at June 30, 2019.

Disclosed in an ASX business update, FY19 unaudited accounts reveal a 15.9% YoY jump in active customers to 1,609,000 (up from 1,388,000 as at June 30, 2018).

Kogan.com’s Exclusive Brands revenue jumped over 30% YoY for 2HFY19, with its home brand White Goods & Built-In Kitchen Appliance Category now the second largest division in its Exclusive Brands business.

“In contrast to what has been reported as a tough retail climate, we have been able to grow the business and earnings while investing significantly in the Kogan.com customer experience and enabling our long term strategy,” claims Kogan.com Founder and CEO, Ruslan Kogan.

Taking on eBay and Amazon, the company launched Kogan Marketplace in 3QFY19, with gross transactional values just under $5 million as at June 2019.

The company claims its formed a US-domiciled subsidiary, with the view of supplying wholesale Exclusive Brand products to US-based retailers – first orders from “large” retailers have been received.

“Marketplace gained momentum during the quarter and we have been overwhelmed by the response from both sellers and customers,” adds Mr Kogan.

Kogan.com has also expanded its logistics footprint to 13 fulfilment centres, prompting “cheaper delivery while servicing more locations.”

FY19 accounts are currently being audited, with detailed trading performance numbers released next month.

Kogan.com’s portfolio of retail and services businesses now include; Kogan Retail, Kogan Marketplace, Kogan Mobile, Kogan Internet, Kogan Insurance, Kogan Money, Kogan Cars and Kogan Travel.

Kogan Energy is slated to launch 1HFY20.

Shares in Kogan.com are currently trading up $4.42 to $5.43.

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