Kogan.com Provides a Business Update for the Month of August
Kogan.com Limited (ASX:KGN) has released a business update for August, showcasing strong financial results for the period. Namely, the company reports growth in active customers of 152,000 to a total of 2,461,000 at 31 August 2020. This is the largest rise in the history of the business and a reflection of the strength of the business’ model, particularly during the Covid-19 pandemic.
Moreover, gross sales for Kogan.com are up 117 per cent year on year in August, with gross profit rising by a margin of 165 per cent year on year. Furthermore, adjusted earnings before interest, tax, depreciation and amortisation rose by over 466 per cent over the previous corresponding period, reinforcing a strong outlook for the company.
On the back of these results, the company has spent large amounts in marketing campaigns, of which August represents the growth Kogan.com has attained during 2020. Indeed, with consistent reports outlining the growth of the business, essentially unabated, the prospectus for the online retailer is resilient to be sure. Within the update, Kogan.com outlines the next update is scheduled for the group’s Annual General Meeting on 20 November 2020.
Promulgating this perception further, is the addition of Kogan.com to the All Australian 200 Index, effective at the open on September 21, 2020. This strongly resonates with the results achieved by the company during the Covid-19 pandemic, highlighting the efficacy of the group’s online-only business model, at a time when physical channels and supply lines are severely constrained. As such, given their positioning within the online space, and with consumers flush with cash to spend, Kogan.com has naturally performed exceedingly well.
The solidity of the company is galvanised further when considering the group’s financial results for the FY20 period, posting extraordinary figures. Indeed, net profit after tax for Kogan.com was reported at a 55.9 increase on the prior corresponding period, with an active customer base up 35.7 per cent on this same period, bringing the total to 2,183,000 at the time of the report. Reinforcing this sentiment is the provision of a fully franked final dividend of 13.5 cents per share.
The dividend payment represents a 64.6 per cent increase on the dividend for FY19. This adequately conveys the robust performance of the company during the period and emphasises the strength of the group’s balance sheet.
Releasing consistently positive business updates, which convey and outline growth in key financial metrics, as well as the customer base, the company appears to be performing well. This may continue to facilitate positive sentiment regarding Kogan.com’s operations moving into the new financial year, and into an increasingly digitised economic and commercial environment. As such, the company may continue to perform well, gaining increasing interest in the digital commerce space.
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