Shares in pure play online retailer Kogan.com fell yesterday despite it foreshadowing stronger profits and revenues.
It reported 40 per cent growth in revenues which came in at $289.5 million in 2017.
This produced an EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) for 2018 that was 90 per cent higher of at least $23.75 million, compared with $12.5 million in 2017.
Analysts however had expected EBIDTA of 117 per cent and higher revenues with for example UBS forecasting Korgan’s 2018 EBITDA to reach $28 million on sales of $424 million.
As a result, Kogan shares closed 11.78 per cent lower at $5.84.
The growth in revenues was on the back of a surge in customers coming in at 1,388,000 as at 30 June 2018, compared with 955,000 as at 30 June 2017.
The company has cash reserves of $41.99 million, and access to a handy $10 million bank facility.
“Kogan.com finished the financial year with a strong quarter of continued growth, as we execute our long term strategy, ” Kogan CEO and founder Ruslan Kogan said.
“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.”
Kogan.com which has a portfolio that includes Kogan Retail, Kogan Marketplace, Kogan Mobile, Kogan Internet, Kogan Insurance, Kogan Health and Kogan Travel as well as pet and life insurance has now moved into white goods, competing against with retail giants like Harvey Norman and JB Hi Fi.