SANTA DELIVERS KOGAN A GIFT

KOGAN.COM (ASX: KGN) has exceeded its expectations and reported another strong quarter of trade.

The online retailer today proved to power through the competitive Christmas trading period, outperforming in both November and December.

The Melbourne company ended the quarter with $26.5 million in cash.

The uplift means the company has already exceeded its full year FY17 Prospectus forecast where it targeted pro-forma earnings before interest, taxes, depreciation and amortisation (EBITDA) of $6.9 million.

Ruslan Kogan, co-founder and CEO, says the company has benefitted from deploying its IPO proceeds into inventory.

Specific sales numbers are not revealed in Kogan's quarterly cashflow report, however the company claims all stock has been turning over quickly, with almost 90 per cent of stock in warehouse as at 31 December 2016 being received during the second quarter of FY17.

"The benefits of our investment in inventory are demonstrated by the strong trading performance and margin improvement in 2Q17. The release of capital constraints has allowed the company to operate with desired inventory levels of brand new in-demand private label stock," says Kogan.

Kogan says demand for new products has continued post-Christmas, and a half-yearly review is currently being undertaken, which suggests guidance could be lifted again.

The retailer opened on the ASX at $1.52 and wrapped up at $1.60.

Business News Australia