Kogan.com Ltd (ASX: KGN) has reported its half year result to December 2018 with a record trading period in the Christmas period.
Kogan.Com is an online business that was set up by Ruslan Kogan in 2006 in his parent’s garage. Kogan.Com offers a variety of products and services including Kogan Retail, Kogan Marketplace, Kogan Mobile, Kogan Internet, Kogan Insurance and Kogan Travel. The company plans to launch Kogan Super in the near future. Kogan.Com aims to offer consumers price leadership through digital efficiencies.
What Kogan.Com Reported
Kogan.Com said that its revenue was 10.6% higher to $231.8 million, with gross transaction value growing by 12.9% to $277.3 million. Kogan.Com said that its active customer base increased by 32.2% to 1.54 million
Gross profit also grew, it went up by 10.8% to $45.1 million. However, EBITDA declined by 6% to $13.3 million (click here to learn what EBITDA means) and net profit after tax (NPAT) dropped by 11% to $7.4 million.
During the six months, Kogan.Com continued to invest in marketing to build the Kogan brand and expanded its warehouse footprint which involved some up-front costs. However, management said the company is already gaining efficiencies from these costs.
At the end of December 2018 the company had $15.5 million cash and inventory of $92.9 million.
Kogan.Com Dividend
The Kogan.Com Board decided to declare a fully franked dividend of 6.1 cents per share, which represents a dividend cut of 11.5%.
Kogan.Com Management Comments
Kogan.Com Founder and CEO Ruslan Kogan said: “We now have a nationwide logistics network, enabling us to delight customers all over Australia with faster and more cost efficient deliver options.
“We also continued to lay the foundation for future growth by forming long-term partnerships with Bendigo and Adelaide Bank Ltd (ASX: BEN), Pepper, Citi and Mercer.”
Kogan.Com Outlook
In January 2019 Kogan.Com said that revenue growth was 13.1% and operating costs only grew by 7.3% (variable costs, marketing costs, people costs and other costs). The company had gross profit growth of 19.9%.
With Kogan.Com still growing revenue at a decent rate and valued at 29x FY18’s earnings, it looks a lot better value than it did a year ago. But I’d rather go for the ASX growth shares that are mentioned in the free report below.
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