KGN Details

Kogan.com Limited (ASX: KGN)has finished the quarter ending June 30, 2018 i.e. 4Q FY18 with cash of $41.99 million. The company has provided a net operating cash flow of $24.3 million in the quarter. Unaudited revenue growth in the FY18 compared with FY17, was greater than 40% to $289.5 million. Growth in FY18 for EBITDA compared with the growth in FY17, was above 90% to $12.5 million. As at June 30, 2018, Kogan.com had active customers’ base of 1,388,000 which has been well above the figure of 955,000 as at June 30, 2017. Strategic investments in marketing activities were continued by the company in 4Q FY18, which are expected to provide a strong return on investment but in short term. In terms of financials, the company remains in a strong position as per the management with access to a $10 million bank facility that remains undrawn, and inventories comprising $9.8 million of inventory in transit and $40.4 million of inventory in warehouse, i.e., a total of $50.2 million. Since 2018, this represents a reduction in inventory of $4.5 million. An increase of $16.8 million since March 31, 2018, was noted for trade and other payables of $47.6 million (the consequent impact on operating cashflow), in view of  seasonal impacts. The company is renowned for price leadership through its digital efficiency and is focused on making in-demand service and products more affordable and accessible. Kogan’s share has seen a daily price change of -$0.780 and a percentage change of -11.782% as at July 24, 2018. Kogan is being witnessing headwinds since the time when media speculation around Company’s management, Mr. Ruslan Kogan and Mr. David Shafer started building up with regards to sale of a stake in the business that is some 10 per cent of the interests and this happened when the Company announced its expansion plans related to logistics and distributions. Given the scenario, we maintain our “Sell” recommendation on the stock at the current price of $5.840.

Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.