Online retailer Kogan.com, whose shares dropped 16% in the first day of trading on the ASX last month, has beaten its prospectus forecasts for sales by 5% and moved from a loss into profit.
Revenue for the year ending June was up 5.4% to $211.16 million and profit was $809,149, compared to a $69,590 loss the year before.
The results were helped by new revenue flowing from the addition of the Dick Smith trading name and customer list for the last two months of the financial year.
Kogan.com shares last traded at $1.67, still down from the IPO listing price of $1.80.
Founder and CEO Ruslan Kogan says the results demonstrate that Kogan.com is on track to to build the business in line with long term strategy.
Kogan started the company in 2006 with two private label LCD televisions. Now there are about 28,000 products for sale.
“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,” he says.
“Following the IPO, we have released the capital constraints on the business, allowing us to aggressively pursue our growth ambitions.”
Buying Dick Smith’s online presence had an immediate impact on revenue and web traffic numbers.
The launch of Dick Smith delivered $6.5 million in revenue after launching on May 4 to the end of June.
Kogan.com has 3.7 million active subscribers, up 60.8% from 2015. Excluding the impact of Dick Smith, subscriber numbers achieved 26.1% organic growth in the six months to June.
Active customer numbers were up 13% in total or 8.2% excluding Dick Smith.
Here’s Kogan.com’s 2016 results compared to forecasts: