The Kogan.com Ltd (ASX: KGN) share price is charging higher on the day of its annual general meeting.
At the time of writing the ecommerce company's shares are up 4% to a 52-week high of $7.92.
What happened at the annual general meeting?
Ahead of the event the company released its annual general meeting presentation.
As well as providing investors with the highlights of FY 2019, the company updated the market with its current trading.
In case you missed it, in FY 2019 Kogan delivered strong sales and profit growth. Gross Sales came in 12% higher at $551.8 million, EBITDA lifted 15.6% to $30.1 million, and net profit after tax jumped 21.9% to $17.2 million.
This solid form continued in the first quarter of FY 2020, with management recently revealing a 16% increase in gross sales and a 28% lift in gross profit.
How has Kogan performed since then?
Since its first quarter update, Kogan's sales performance has strengthened further. This has been driven by a strong performance from Exclusive Brands and Kogan Marketplace.
During October Kogan achieved an 18.5% increase in gross sales compared to the prior corresponding period. And while its gross profit growth in October has moderated since the first quarter to 22.9%, a material reduction in operating costs looks set to be a big boost to its bottom line.
During October Kogan's operating costs fell 8.6% on the same period last year. Management explained that its operating costs have reduced thanks to a decline in marketing costs. This was driven by efficiencies gained with the operation of its new proprietary marketing platform. It offset an increase in variable costs following the expansion of its logistics footprint and growth in inventory.
But CEO Ruslan Kogan isn't resting on his laurels and remains focused on the key Christmas period.
He said: "While the first 4 months of the financial year are exhibiting strong growth metrics, we know that the business end of the year is ahead of us with the Christmas trading period of November and December. These are usually the most important trading months of the year for us."
