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Results: Kogan share price jumps 10% after passing half a billion gross sales

The Ltd (ASX: KGN) share price jumped 10.7% to $5.80 in early trade this morning after surpassing half a billion dollars worth of gross sales in its latest full-year result.

What were Kogan’s full-year highlights?

Kogan reported revenue from ordinary activities up 6.4% on the prior corresponding period (pcp) to $438.7 million for the year ended 30 June 2019 (FY19).

The biggest revenue drivers for the Aussie retailer was its Exclusive Brands segment, which saw 41.6% year-on-year growth, the company’s Kogan Mobile business and the launch of its Kogan Marketplace initiative throughout the year.

Kogan’s profitability also surged, with profit before tax climbing 11.4% to $23.4 million while net profit after tax (NPAT) rocketed 21.9% higher to $17.2 million for the year.

Earnings before interest, tax, depreciation and amortisation (EBITDA) climbed $4.1 million from FY18 to $30.1 million as at year-end, while the company also boosted its balance sheet strength.

The Aussie conglomerate reported net cash of $27.5 million and $30.0 million of undrawn bank facilities, with $75.9 million inventories

Kogan has expanded far beyond its online electronics roots, and now represents an umbrella of Kogan Retail, Kogan Mobile, Kogan Health, Kogan Money and many more divisions.

Positively for the Aussie group, year-on-year active customer numbers climbed to 1,609,000 throughout FY19, adding 221,000 to its 1,388,000 FY18 total.

Net assets climbed $3 million higher to $50,797,955 in a broadly solid result for Kogan and one that should please shareholders.

Foolish takeaway

This morning’s headline numbers appear strong from Kogan, so it will be interesting to see how shareholders react to the company’s full-year result.

I’d expect to see the Kogan share price to trade higher today, particularly given the strong growth reported from its Exclusive Brands segment which analysts see as key to delivering on the stock’s upside potential.

Without specifying guidance, Kogan reported that second-half EBITDA had climbed more than 25% higher back in late July and investors were expecting a strong result from the Aussie conglomerate.

Prior to the market open, the Kogan share price had climbed more than 50% this year to be valued at $5.24 per share.

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Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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