Dick Smith helps Kogan.com exceed FY16 forecast
Online retailer Kogan.com’s purchase of Dick Smith’s online operations helped the company outperform its FY16 prospectus forecast, the company revealed.
Kogan reported revenue for the financial year of $211.2 million, exceeding the prospectus forecast by 5%. Dick Smith contributed $6.5 million revenue since the brand was relaunched as an online-only retailer under the Kogan umbrella in May.
Net profit excluding one-off costs related to the Kogan.com IPO meanwhile more than doubled the prospectus forecast, growing to $800,000 from $300,000 in FY15.
Kogan.com founder and CEO Ruslan Kogan said the results reflected the successful integration of Dick Smith, as well as solid growth in active customers and subscribers, accelerated growth in the company’s third-party domestic product division and ongoing cost efficiencies.
Kogan.com had 3.7 million active subscribers at the end of June, up 60.8% from calendar year 2015. Organic subscriber growth reached 26.1%.
The company’s Kogan Travel and Kogan Mobile brands are also experiencing continued growth, with the latter outperforming management’s expectations, he said.
“Today, Kogan.com is Australia’s leading pure play online retail website, generating more traffic and Google search queries than its peers,” Kogan said.
“Our launch of Dick Smith ahead of schedule demonstrates the capability of our team to rapidly deliver major complex projects, as does our successful launch of Kogan Mobile and Kogan Travel in 2015. Following the IPO, we have released the capital constraints on the business, allowing us to aggressively pursue our growth ambitions.”
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