Kogan.com’s latest earnings update shows the pure play online retailer is ahead of forecasts.
A short time ago, its shares were up 8% to $1.61. This is still below the list price of $1.80 but ahead of the first day trading price of $1.50.
The company ended the December quarter with cash of $26.5 million and has hinted at improving on its profit guidance for the full year.
Kogan says it achieved its full year EBITDA (earnings before interest, tax, depreciation and amortisation) prospectus forecast of $6.9 million during the first half.
Founder and CEO Ruslan Kogan says the company exceeded expectations for November and December.
This indicated the company may hit numbers better than the full year EBITDA (earnings before interest, tax, depreciation and amortisation) guidance of between $8 million and $9 million.
“We are pleased to deliver cashflows that demonstrate better than forecast operating results for Kogan.com’s second quarter of trading as a listed company,” says Kogan.
“We believe Kogan.com is well placed to continue the strong momentum generated in the first half.”
He says the strong demand over Christmas has continued post Christmas.
“While the company’s earnings performance to date is exceeding expectations of guidance which was revised upwards at the company’s AGM, the board is mindful that a half-yearly review is being undertaken by the auditor.”