Kogan.com shares have tanked for the second day in a row
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Shares in online retailer Kogan.com fell hard for a second trading session in a row Wednesday.
The shares have dropped almost 25 per cent since Friday’s close.
Today they fell 11.1 per cent to $5.19 — after dropping 11.7 per cent on Tuesday. Kogan.com listed on the ASX in 2016 at $1.80 a share.
In a quarterly update, the pure-play online retailer reported that full-year revenue grew more than 40 per cent to around $405 million in 2018.
However, earnings were down on expectations. EBITDA earnings were more than 90 per cent higher than 2017’s $12.5 million, but analysts had expected 117 per cent.
At the end of June, the company had cash of $42 million and access to a $10 million bank loan.
Here is Kogan’s share price graph for the past year:
Kogan.com closed the year with active customers of 1,388,000 compared to 955,000 the year before.
“Kogan.com finished the financial year with a strong quarter of continued growth, as we execute our long term strategy,” said founder and CEO Ruslan Kogan.
“We are excited about all the growth initiatives we are implementing, as we continue to make the most in-demand products and services more accessible and affordable for our customers.”
Scaleable business model
Kogan.com is generally liked by analysts because the online player has a scalable business model that doesn’t need a lot of capital thrown at it.
UBS in May forecast that Kogan.com’s verticals, its growing portfolio businesses, will account for about 27 per cent of group gross profit by the 2021 financial year.
Kogan.com has been expanding its portfolio offering, last month signing supply and logistics agreements which allow it to enter the Australian Whitegoods and Built-In Kitchen Appliance Market with its own range of exclusive brand price-competitive products.
The company has Kogan Retail, Kogan Marketplace, Kogan Mobile, Kogan Internet, Kogan Insurance, Kogan Health and Kogan Travel.
In February, Kogan.com posted a 45 per cent jump in revenue to $209 million for the December half. Profit was $8 million, up 470 per cent.
Ruslan Kogan owns about half of the company. Last month he and chief financial officer David Shafer together sold a combined 6 million shares.