Kogan flags strong second-half profit growth
KOGAN.COM has flagged second-half profit growth of more than 12 per cent and plans to start selling its own branded goods in the US.
The online retailer says unaudited second-half gross profit for the six months to June 30 was more than 12 per cent higher than a year ago, while gross transaction value across the group grew more than nine per cent.
Kogan did not give earnings guidance when it announced an 8.6 per cent drop in firsthalf profit back in February, but yesterday said second-half earnings before interest, tax, depreciation and amortisation had grown by more than 25 per cent.
The retailer, which will report its audited full-year results next month, also said it had formed a US-domiciled subsidiary to supply its own brand products to US retailers - some of whom have already placed orders.
“We have continued to invest in our platform and logistics capability and these investments enable us to deliver our products faster, cheaper and to more locations,” founder Ruslan Kogan said.
“We are obsessed about delivering our customers better value, and look forward to the start of the new financial year with confidence in our team, and our business strategy.”
Second-half revenue from Kogan’s exclusive brands – which include its eponymous appliances, Komodo camping gear, Certa power tools and Orbis luggage – rose more than 30 per cent on a year earlier.
Royal Bank of Canada analyst Tim Piper said the exclusive brands had performed better than expected. “The exclusives segment, which in our view is a key value driver, has beaten our expectations at the revenue line and we continue to view this channel as a key value driver,” Mr Piper said.
Shares in Kogan rose as much as 6.7 per cent yesterday and were still 4.2 per cent higher at $5.42 an hour before the Australian share market closed.