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RAISING the bar high in its first year as a publicly listed company, Kogan.com (ASX: KGN) has smashed its forecasts across the board to deliver a net profit after tax of $3.7 million, up 362 per cent on its previous year.
The company, which began as an electronics retailer, has now expanded into markets including mobile, travel and insurance to boost its financial performance.
Pro forma profits have risen a whopping 800 per cent on FY16 to reach $7.2 million. This result reflects Kogan's potential profits and discounts the impact of its $3 million IPO cost and a further $700,000 worth of unrealised foreign exchange losses.
Revenue is up 37 per cent at $289.5 million, a figure largely boosted by the performance of Kogan's diversified 'private label' range, which includes several brands across industries such as technology, appliances and health and beauty.
The private label range accounted for more than half of the group's overall gross profit.
Founder and CEO Ruslan Kogan says the company has been focused on giving its customers access to products and services that are in high demand, and has beaten all financial forecasts for the year.
"FY17 has been a very strong operation year for Kogan.com, it has seen us deliver results that have outperformed on our prior year and prospectus forecasts," says Kogan.
"This result reflects the skill and dedication of our team, the growth in Kogan.com's portfolio of products and services businesses and our ability to make well considered investments in inventory and marketing in line with our long-term strategy."
"The company has a strong balance sheet which will allow us to continue to fund growth in our core Kogan Retail business, while the continued diversification of our Kogan portfolio is providing strong cash flows.
"We will continue to look for opportunities to serve our loyal community of customers with new value-focused offers."
Kogan has declared a fully franked final dividend of 3.8 cents per share, bringing the total dividend for the year to 7.7 cents per share.
KGN shares are currently trading up 6.25 per cent (at 12pm AEST) at $2.55.
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Business News Australia
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