Ruslan Kogan’s pure play online sales machine Kogan.com posted full year after tax profit of $3.74 million, a 362.3% rise on last year, outperforming its prospectus forecast.
In early trade, the share were up 6.6% to $2.56.
The result is an indication that Kogan’s portfolio strategy is starting to bite. The online retailer has already launched NBN, travel, insurance and mobile broadband services on top of its traditional consumer electronics offering.
Revenue for the year to June was up 37.1% to $289.52 million. The active customer base grew to 955,000, up 36.0% from 12 months earlier.
Kogan.com shares dipped below its ASX-listing price of $1.80 issue price in July last year but have been rising this year as the company reports better than expected progress against its prospectus. The shares last traded at $2.40.
“This result reflects the skill and dedication of our team, the growth in Kogan.com’s portfolio of products and services businesses and our ability to make well considered investments in inventory and marketing in line with our long term strategy,” says founder and CEO Ruslan Kogan.
“The company has a strong balance sheet which will allow us to continue to fund growth in our core Kogan retail businesses, while the continued diversification of our Kogan portfolio is providing strong cash flows.
“We will continue to look for opportunities to serve our loyal community of customers with new value-focused offers.”
He says 2018 trading started well with July results showing year on year revenue growth of 34.9%.
The company declared a fully franked final dividend of 3.80 cents a share, bringing the total full year payout 7.70 cents.
The 2017 results compared to prospectus forecasts: