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- Online retailer Kogan.com (KGN) is trading strong today after another solid monthly business update
- Over the month of July, Kogan increased its active customer base by 126,000 people and posted a 160 per cent year-on-year increase in profit
- Since the COVID-19 pandemic struck, Kogan shares have soared as more people shop from the comfort of their own homes
- The company’s annual financial results will be released next week
- Today, shares in Kogan are trading 9.52 per cent higher and worth $20.60 each
Online retailer Kogan.com (KGN) is trading strong today after another solid monthly business update.
The company is slated to release its 2020 annual financial report next week but teased investors with some strong July figures today.
Over the month of July, Kogan’s active customer base grew to 2.3 million people — and increase of 126,000 users over the month.
On the back of the solid customer growth comes a 110 per cent year-on-year bump to gross sales and a 160 per cent year-on-year increased in gross profit.
The company’s earnings before interest, tax, depreciation, and amortisation (EBITDA) was $10 million over the month of July.
Of course, the July results won’t be included in the company’s upcoming annual report, but today’s figures give some indication as to what can be expected in the results.
The company’s half-yearly results for June until the end of December 2019 were met with some disappointment from shareholders as revenue slipped 5.3 per cent on the year before. However, the COVID-19 pandemic saw shoppers shut inside their homes and, as a result, online shopping surged.
With demand for its services on the rise, Kogan raised $120 million through a placement and share purchase plan in June, giving its balance sheet a nice boost ahead of the new financial year.
Shares in the online retailer have been lurching ahead in leaps in light of the pandemic, with investors shaking off bad news as it comes. For example, in July, Kogan was found guilty of misleading customers in a 2018 sale and is expected to be fined millions of dollars. Since news of the lost court case was announced, Kogan shares have increased in value by 21 per cent.
The company’s annual financial figures, then, have some pressure to deliver. Market expectations are high for Kogan, so the company may need to rely on some stellar results to keep its share price moving up.
Today, shares in Kogan are trading 9.52 per cent higher in late-market action and worth $20.60 each.
