Kogan exceeds forecast on bumper sales

Image source: Kogan Facebook

KoganKogan has skated past its earnings guidance in its first year as a publicly listed company, booking strong revenue growth on its private label range and expansion into a range of services.

Revenue increased by 37.1 per cent to $289.5 million to the year ended 30 June, driving a 230 per cent increase in earnings before interest, tax, depreciation and amortisation (EBITDA) to $13.2 million.

Kogan Marketplace sales increased 51.3 per cent year-on-year, while private label sales continue to grow, underpinning a 17.6 expansion in gross margin and representing 52.2 per cent of its $7.2 million net profit result – an increase of 800 per cent on FY16.

Expansion into services, including Kogan Mobile, Kogan Insurance and Kogan Broadband was intensified during the year, with mobile adding $3.6 million to the kitty.

However, CEO and namesake founder Ruslan Kogan declined to provide specific earnings guidance for the year ahead, despite noting initial revenue growth of 34.9 per cent in the first weeks of FY18.

Instead, Kogan will provide more regular quarterly trading updates, which it believes will continue the trajectory of strong revenue growth driving another business-wide increase in EBITDA margins.

“This result reflects the skill and dedication of our team, the growth in Kogan.com’s portfolio of products and services businesses and our ability to make well-considered investments in inventory and marketing in line with our long-term strategy,” Kogan told the market.

“We will continue to look for opportunities to serve our loyal community of customers with new value-focused offers.”

Active customers increased by more than a third to 955,000 during the year on investment in marketing initiatives that Kogan believes will bolster vertical diversification through FY18.

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