The Kogan.Com Ltd (ASX: KGN) share price has gone up 7% in response to the release of its FY19 result.
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.
Kogan.Com’s FY19 Result
Kogan.Com reported that gross sales (formerly gross transaction value (GTV)) rose by 12% to $551.8 million and revenue went up by 6.4% to $438.7 million.
‘Exclusive Brands’ was a big driver of the result with revenue growth of 41.6% and it represents almost half of FY19 profit. But
Third-Party Brands experienced a decline in revenue which Kogan blamed on changes in the GST laws GST avoidance by foreign sites and lower demand for Apple products.
The online retailer said it achieve 15.9% growth of its active customer base to 1.61 million with 24.4% growth of customers in Kogan Mobile.
Kogan’s gross profit grew faster than revenue, it rose by 12.5% to $90.7 million with the gross profit margin improving by 1.2% to 20.7%.
EBITDA rose by 15.6% to $30.1 million (click here to learn what EBITDA means). The bottom line showed that net profit after tax (NPAT) jumped 21.9% to $17.2 million.
Kogan.Com Dividend
The Kogan Board decided to declare a final dividend of 8.2 cents per share, resulting in 14.3 cents per share for FY19, which is an increase of 10% on last year.
Kogan ended the year with $27.5 million of cash, so it’s in a solid financial position.
Is Kogan.Com A Buy?
The company will soon be launching Kogan Mobile New Zealand, Kogan Money Super, Kogan Money Credit Cards and Kogan Energy.
Plus, in July the company has seen gross sales growth of 18.3% and gross profit growth of 32%.
I think Kogan could be one to watch as long as it’s able to generate profitable growth over time. It seems to be a business with growing profit margins and very scalable. Time will tell if it can stand up to Amazon over time.
The growth shares in the free report below could be even better ideas to beat the market.
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