Business has been better than expected for pure play online retailer Kogan.com.
The company now expects full year EBITDA (earnings before interest, tax, depreciation and amortisation) to be more than $11.5 million, an increase from previous guidance of between $10.5 and $11.5 million.
A short time ago, Kogan.com shares were up 3.2% to $1.75, still below the issue price of $1.80 but well above lows of $1.32.
Kogan.com, which listed on the ASX in July last year, says strong trading momentum continued in the March quarter with the business exceeding revised budgets, producing net operating cash flows of $1.1 million.
“We are building the Kogan.com business in line with our long term growth strategy,” says CEO Ruslan Kogan, who started the company in 2006 in his parent’s garage.
“Our operating momentum is strong and we are delivering sustainable growth for our shareholders.
“With the funds raised at the IPO, our consumer offering is stronger than it’s ever been and our customers are happier than they’ve ever been.”
A maiden dividend of 3.9 cents a share was paid last month and the company plans a final dividend at the end of the 2017 financial year.