Kogan.Com Ltd (ASX: KGN) released its 2018 financial results to the market today revealing an 110% increase in net profit.
Kogan is an online business that sells retail products, mobile & internet plans, insurance and travel insurance.
Here are some of the highlights from its report:
- Revenue increased by 42.4% to $412.3 million
- EBITDA grew by 108% to $26 million (click here to learn what EBITDA means)
- Net profit went up by 110.4% to $14.1 million
- Annual dividends per share up by 69% to 13 cents
According to Bloomberg, analysts were expecting Kogan.Com to report a profit of $15.4 million. A dividend of 12 cents was also expected. Despite appearing not to meet expectations the Kogan.Com share price has risen by nearly 11% in early trade.
Kogan.Com was pleased to point out that its active customer base has grown by 45% over the past year to 1,388,000 people. Another statistic that management wanted to highlight was that the gross margin expanded to 19.5% from 17.9% last year.
Kogan.Com Founder and CEO, Ruslan Kogan, commented: “We are focused on maintaining our price leadership position, while delivering growing earnings to shareholders – principally by focusing on digital efficiency and maintaining low overheads.
Shareholders of Kogan.Com will be hoping the share price continues to recover after falling around 50% from the start of June to the start of August. Some media commentators questioned why management was trying to sell some of their shares.
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