Kogan.com (ASX: KGN) has released its half-year results for the period ending 31 December, 2019 to the market today. The business reported revenue of $219.5m and adjusted EBITDA of $18.2m, which are ahead of analyst expectations of $216m and $17.7m, respectively. For Kogan and their investors alike, it is good to see that repeat business is growing along with average gross sales per customer. Exclusive brands now form 46% of gross profit and third-party brands represent 20.8%. Furthermore, KGN has declared an interim dividend of 7.5 cents per share, in line with consensus expectations.
Kogan.com has fallen 5.5 per cent on the back of releasing its 1H FY20 results, despite reporting an adjusted EBITDA of $18.2 million, a 2.8% beat on consensus expectations of $17.7 million. (Credit: Kogan.com).
Kogan’s trading update on 20 January was the first time the market saw a slowed growth rate in its Exclusive Brands segment, which is their largest segment. The market appeared to have expected more colour on the reasoning for this in their announcement. However, the business has not provided any explanation for this, aside from saying the segment:
continued to achieve year-on-year revenue growth.
This appeared to concern investors, as the segment may be seeing some cannibalisation. Kogan.com did not provided a clear outlook for the full-year, however it will continue to announce trading updates, as per usual. KGN did mentioned there may be a 2H20 impact to earnings if there are sustained closures in China due to coronavirus, as this will cause delays of orders.
The market reacted unfavourably to the announcement, with stock undergoing a heavy sell-off. The price is now down below $5 per share, representing a 5.5% fall from market close yesterday at $5.25, given the uncertainty around top-line growth visibility.
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