Newly listed online retailer, Kogan.com (ASX:KGN), has posted a profit of $800,000 for FY16, double what was forecast in the company’s prospectus before its IPO on July 7 2016.
While profit is positive after disappointing initial trading on the ASX, it is still well below the $1.8 billion the company posted in 2014.
Kogan said revenue beat prospectus forecasts by five per cent to $211.2 million - this included $6.5 million from the launch of the Dick Smith online store which the company acquired in March 2016.
The company’s net profit was expected to be in the vicinity of $400,000, with sales of $201 million, figures which were comparable to prospectus forecasts.
Earnings before interest, tax, depreciation and amortisation (EBITDA) was $4 million, 38 per cent ahead of prospectus forecasts.
Kogan.com Founder and CEO, Ruslan Kogan, said the results reflected growth in active customers and active subscribers; the successful integration of Dick Smith; growth of the third party domestic product division; efficiencies arising from the optimisation of back-end systems including an SAP (ERP) implementation; automation initiatives; and the growth of Kogan Travel and Kogan Mobile.
“Kogan.com is built on a strong sustainable foundation of brand-equity, efficient ‘next generation’ supply chain, technological expertise and a world class management team,” he said.
“We are pleased to deliver results for our shareholders that exceed prospectus forecasts and demonstrate that we are on track to continue to build the Kogan.com business in line with our long-term business strategy.
“Our launch of Dick Smith ahead of schedule demonstrates the capability of our team to rapidly deliver major complex projects, as does our successful launch of Kogan Mobile and Kogan Travel in 2015.
"Following the IPO, we have released the capital constraints on the business, allowing us to aggressively pursue our growth ambitions.”
Kogan’s share price was $1.67 at the time of writing.