Kogan.com is preparing for a bumper Christmas shopping season while sales for traditional retailers are sliding.
Kogan.com today released its quarterly numbers showing a 39% rise in sales over the latest three months as the pure-play online retailer prepares for the Christmas shopping season.
The latest cash flow statement for the first quarter of the 2018 financial year shows the company holding $25.8 million in cash.
Unaudited management accounts show 278,000 new customers, revenue growth of 35.9%, a rise in EBITDA (earnings before interest, tax, depreciation and amortisation) of 37.7% and a gross margin of 18.2% for the quarter compared to the same three months last year.
Kogan Insurance, which launched in August, is showing “encouraging initial metrics”.
The online retailer has already launched NBN, travel and mobile broadband services on top of its traditional consumer electronics offering.
“Kogan Insurance is off to a promising start after launching,” says CEO and founder Ruslan Kogan.
The company has increased inventories by $12.8 million to $52.5 million in anticipation of strong seasonal sales.
Kogan.com shares dipped below its ASX-listing price of $1.80 in July last year but have been rising this year as the company reports better than expected progress against its prospectus.
The shares were up 5.1% to $4.58 in early trade today.
In August, Kogan posted full-year after tax profit of $3.74 million, a 362.3% rise on last year, outperforming its prospectus forecast.
Logan’s cash from from operations for the first quarter of 2018: