DICK SMITH BOOSTS KOGAN
23 August 2016, Written by Melbourne Business News
DICK Smith has boosted Kogan's (ASX: KGN) full year result and helped the company beat expectations.
The collapsed Dick Smith, which Melbourne-based Kogan relaunched as online only in May, delivered revenue of $6.5 million to the recent ASX inductee in FY2016.
Kogan took a total statutory revenue of $211.2 million over the period.
Excluding Dick Smith, Kogan.com outperformed forecasts by $3.6 million.
Kogan founder and CEO Ruslan Kogan (pictured) says the results reflect a successful integration and solid growth in active customers.
"Today Kogan.com is Australia's leading pure play online retail website, generating more traffic and Google search queries than its peers," says Kogan.
"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."
Kogan realised a statutory net profit after tax of $800,000 for the full year, still exceeding its Prospectus forecast by 100 per cent.
This means the company has shifted from loss to profit territory.
Pro forma earnings before interest, taxes, depreciation and amortisation (EBITDA) was $4 million, up 37.9 per cent on the Prospectus guidance.
Kogan said in a statement to the ASX this morning that 'it is clear' the performance 'was constrained by cash flow'.
However, the company is confident it is well ahead of the curve for Australian online retail and since the IPO expects it will be able to deploy more capital into private label products.
Kogan hopes for this line to become the company's bread and butter, 'a key driver' of future growth.
"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," he says.
Kogan was trading up 1.2 per cent at market opening at $1.69 per share.
Author: Melbourne Business News Connect via: Twitter