​Kogan exceeds guidance with AU$211m of revenue

Kogan has attributed its positive performance to a growing customer base, the launch of Dick Smith, improved technology infrastructure, and the growth of Kogan Travel and Kogan Mobile.

Online retailer Kogan has published its financial results for the full year ended June 30, 2016, the first results since it listed on the Australian Securities Exchange (ASX) on July 7, announcing the company achieved revenue of AU$211.2 million, which exceeded prospectus forecast by 5 percent.

The company's statutory earnings before interest, tax, depreciation, and amortisation (EBITDA) came in at AU$3.9 million, while net profit after tax came in at AU$809,149, an improvement on calendar year 2015 when it was at a loss of AU$69,590.

Gross profit for the full year was AU$32 million, a slight increase on AU$28 million recorded in calendar year 2015.

Kogan.com attributed the positive performance of FY16 to a number of factors including the growth of its customer base to 3.7 million active subscribers as of June 30, 2016, up 60.8 percent from 2015; the launch of Dick Smith, which has since delivered AU$6.5 million in revenue, as a result of Kogan's acquisition of Dick Smith's online retail business following the electronic retailer entering into voluntary administration in early January; and growth of Kogan Travel and Kogan Mobile where gross sales of each exceeded prospectus by 11.6 percent and 25 percent respectively during the financial full year.

Additionally, the company attributed the FY16 financial performance to the implementation of the SAP enterprise resource planning platform at the end of August 2015 prior to the company becoming an ASX-listed firm.

As part of its results, the company revealed website development costs increased to AU$2.1 million, software costs reached AU$765,377, and intellectual property costs were AU$5.5 million.

"We are pleased to deliver results for our shareholders that exceed prospectus forecasts and demonstrate that we are on track to continue to build the Kogan.com business in line with our long term business strategy," Kogan.com founder and CEO Ruslan Kogan said.

"Our launch of Dick Smith ahead of schedule demonstrates the capability of our team to rapidly deliver major complex projects, as does our successful launch of Kogan Mobile and Kogan Travel in 2015. Following the IPO, we have released the capital constraints on the business, allowing us to aggressively pursue our growth ambitions."

Looking ahead to next year, the company reiterated it will be focused on investing in new products and categories, such as Kogan.com's private label, Kogan Mobile, and Kogan Travel, as well as marketing, and building the Kogan community.

It also reaffirmed its FY17 prospectus forecast where revenue will be AU$241.2 million; earnings before interest, tax, depreciation, and amortisation will be AU$6.9 million; and net profit after tax will be AU$2.5 million.

"Following the IPO, Kogan.com is now well positioned to capitalise on growth opportunities in Private Label, with new and expanded product lines under production in advance of the peak Christmas trading period," the company said.

"Today, almost one in every six Australians subscribes to our sites."


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