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Kogan smashes Christmas sales targets

Growth in Kogan mobile and strong trading over Christmas have positioned to deliver better-than-expected earnings and revenue growth for the first half of fiscal 18.

In a trading update released on Monday morning, Kogan said its trading momentum accelerated in the second quarter, with half-year earnings before interest, tax depreciation and amortisation (EBITDA) now likely to be more than the 58.3 per cent year-on-year growth it previously reported for the first four months of FY18.

Revenue growth, which was reported at 36.2 per cent year-on-year for the first four-months, has also accelerated in November and December.

Founder and CEO Ruslan Kogan, who has just returned from a trip to CES 2018 in Las Vegas, said Kogan broke a sales record over Christmas.

“I’m very proud of the entire team for achieving a record breaking quarter this Christmas sales season,” he said.

“We ended the Christmas quarter with a robust level of in-demand inventory. We are now extremely well poised to support our accelerated trajectory into the new calendar year.”

The growth comes off the back of several services announcements in the first-half of fiscal 18, including health and pet insurance, while Kogan mobile in partnership with Vodafone is slated to launch soon.

Kogan ended the second quarter with $28.2 million in cash, producing new operating cash flow of $4.2 million during the quarter when corrected for a “significant investment” in inventory.

The company valued its inventories at $69.6 million at 31 December, including $13.8 million of inventory in transit and $55.9 million in warehouse inventory.

93.4 per cent of warehouse inventory was less than 90 days old at the end of the year, the company advised.

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