Kogan Closes Q4 With Cash Flow of $41.99 Million

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By Published On: July 24, 20180 Comments

Kogan has released its Appendix 4C Cash Flow Statement for the period ending June 30, 2018, revealing a total cash flow of $41.99 million for Q4.

In the three months ending June 30, Kogan generated a net operating cash flow of $24.53 million, with a revenue growth of 40 percent year-on-year. The company’s EBITDA growth rose approximately 90 percent from FY17’s $12.5 million.

Active customers on the platform also grew in the 12-months leading to the end of FY18, increasing from 955,000 in June 2017 to 1,388,000 as at June 30, 2018. Over the quarter, the company continued to make strategic investments in marketing activities that are expected to provide a strong return on investment in the short-term.

Kogan has ended the quarter in a healthy position, with access to a $10 million bank facility that the company has left undrawn, it also has inventory to the value of $50.3 million, with the bulk of that currently in transit. This represents a $4.5 million reduction in inventory since March 2018.

According to Kogan’s CEO, Ruslan Kogan, this growth is a result of continued focus on the company’s long-term business goals.

“ finished the financial year with a strong quarter of continued growth, as we execute our long-term strategy,” he said.

“We are excited about the growth initiatives we are implementing, as we continue to make the most in-demand products and services more accessible and affordable for our customers.”

The e-tailer’s Q4 growth marks the continuation of its strong results in Q3, with figures from earlier in the year marking a 46.1 percent increase in trade from the same period in 2017. At the time, Kogan predicted the business was “poised to continue its growth trajectory into the seasonally strong end-of-financial-year quarter”, a statement which has come to fruition.

However, Kogan hasn’t been without its fill of drama over the last quarter, as it faced legal action from Catch Group after violating its trademarks. Kogan was caught using sponsored links containing the word ‘catch’ to drive extra traffic to its site through Google AdWords, resulting in the business having to remove its campaigns and face penalties for the infringement.

The authenticity of Kogan’s investment in the business was also called into question when the company’s directors, Kogan and David Shafer successfully offloaded six million shares (valued at $45 million), causing a 13 percent drop in the share price.

An ASX announcement released by confirmed that both Kogan and Shafer “received an unsolicited bid for 6,000,000 shares”, which they “reluctantly” accepted due to personal reasons. News relating to this sale broke less than a week after both Kogan and Shafer reportedly botched a sale of 11 million shares for $100 million.

The company’s full FY18 sales will be released next month, followed by further updates in November.

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