By Kymberly Martin
Outperforming expectations.
Online retail website Kogan.com has released its Cash Flow Statement for the quarter ending 30 September 2016 (1Q17) that was better than expected, ending 1Q17 with cash of $31.7 million. The stronger than forecast operating results are from Kogan.com’s first quarter of trading as a listed company.
Assessing management accounts of performance in 1Q17 against the company’s forecasts for the same period, Kogan.com is outperforming expectations on: revenue up by more than 10%, gross profit by more than 20% and pro-forma EBITDA by more than 30%.
Kogan CEO Ruslan Kogan said the company is pleased with the strong performance and has a strong balance sheet in the lead-up to the peak Christmas quarter.
“With a healthy cash balance and lower than expected stock at the end of September, we believe Kogan.com is well placed to increase inventory levels next quarter to capitalise on the Christmas trading period.”
He said the benefits of investment in systems and automation are continuing to be realised and together with revenue growth, are positively impacting on gross profit and earnings. “We now have a solid platform to scale Kogan.com, and we continue to focus on delivering operating leverage and margin improvement into the business.”
Kogan acknowledged that while the company’s performance so far this financial year is above expectations, the Board was mindful that only one quarter has passed. “The Board is closely monitoring ongoing trading performance, and will continue to review if an update to the company outlook is required,” he said.