Kogan lifts full-year earnings forecast
Online retailer Kogan.com has upgraded its full-year earnings forecast for the third time since it listed on the share market nine months ago, with strong trading momentum continuing in the third quarter.
Kogan, which sells consumer electronics, general merchandise, food and travel deals, says it has achieved more than $10 million of pro forma earnings before interest, tax, depreciation and amortisation (EBITDA) in the nine months to March 31.
As a result, the company expects its full-year earnings to exceed $11.5 million with its earlier strong trading momentum continuing in the three months to the end of March.
This is an increase from its previous guidance for pro forma EBITDA of between $10.5 million and $11.5 million.
The news lifted Kogan’s shares 1.77 per cent on a day when most retail stocks finished in the red.
Founder and chief executive Ruslan Kogan said funds from the company’s float in July had allowed it to extend its range of products and the company’s cashflows had been better than forecast.
“Our operating momentum is strong and we are delivering sustainable growth for our shareholders,” he said.
“With the funds raised at the IPO, our consumer offering is stronger than it’s every been and our customers are happier than they’ve ever been.”
The company, which had outlined a full-year EBITDA of $6.9 million in its IPO prospectus, also announced plans to pay a final dividend.
It paid its maiden dividend of 3.9 cents on March 24 and the board will also look at introducing a formal dividend policy.
Kogan has previously told AAP he wasn’t concerned about the pending arrival of online retail giant Amazon.
Instead, he expects his business, which has a standalone website and an eBay store, to benefit from Amazon as another potential marketplace.
Shares in Kogan closed three cents, or 1.77 per cent, higher at $1.725.
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