Shares in ecommerce company Kogan.com Ltd (ASX: KGN) are trading higher after the company reported what one broker has called a "very strong result''.
In a statement to the ASX on Monday, Kogan.com said it had boosted gross sales by 16%, while revenue was 5% higher at $287.6 million.
Adjusted EBITDA was $24.4 million, down 3% on the same period the previous year, while net profit of $8.2 million was down 20%.
Despite a decline in some figures, the team at RBC Capital Markets said it was a "very strong result," beating EBITDA expectations by 23%.
The RBC team added:
Pleasing to us, the significant beat to expectations for EBITDA has been driven by both segments Kogan.com (+16.5% vs consensus) and Mighty Ape (+15.1% vs consensus). January trading (revenue growth: +7.8%) is tracking below current consensus expectations for 2H26 (+13.8%). However, we note this has been driven by weaker than expected top-line growth at Mighty Ape with Kogan.com tracking ahead. Given the well-flagged and one-off nature of issues within the Mighty Ape segment, we expect the market may choose to look through lower than expected performance in this segment in early 2H26.
And it seems that was the case, with Kogan.com shares trading 6.8% higher at $3.30 around noon on Monday.
Fleshing out the results further, the company said it had 3 million active customers on Kogan.com at the end of the half, up 28% year on year, while Mighty Ape had 700,000 customers, up 3%.
The company also increased its interim dividend by 14.3% to 8 cents per share, fully-franked.
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Company well-positioned
Kogan.com chief executive officer Ruslan Kogan said the company was performing well.
Kogan.com's consistent focus on delivering value to our growing customer base is driving significant momentum across our business. Our platform's strength allows us to continuously improve the shopping experience and deliver increasing value for our customers. We are very pleased with our ability to grow and serve over 3 million Active Customers. This dedication to value resonated during the crucial Christmas trading months of November and December. By helping millions of shoppers stretch their holiday budgets, we achieved a 35% increase in Adjusted EBITDA over the period.
Mr Kogan said there had been a "deliberate operational and inventory reset'' within the Mighty Ape division, and he was encouraged by the early signs of that strategy paying off.
Mr Kogan added that the company was well-positioned in challenging times.
The broader economic environment remains challenging for many households. In times like these, customers gravitate towards trusted brands that consistently deliver value. The Kogan Group is well positioned in this regard, having built its reputation on providing marketing leading prices, supporting customers with unbeatable value that makes everyday shopping more affordable.
RBC has a bullish price target of $5.50 on Kogan.com shares. Kogan was valued at $302.4 million at the close of trade on Friday.
