Kogan.com’s stocks have plunged almost 12% to six-months lows yesterday after what investors said was a disappointing fourth-quarter trading update.
The online consumer electronics upstart on Tuesday revealed cash flow of $24.53 million for the June 30 quarter.
Unaudited accounts suggest full-year revenue growth of more than 40% and earnings growth of more than 90%. Those were suggestions, not actual hard figures and investors weren’t impressed, sending the stock down by almost 10% to $5.99 – which is the lowest the stock has traded since December last year.
Kogan.com’s shares – which were the best performing on the ASX last year – have now fallen almost 40% since the start of June. That’s when Kogan founders, Ruslan Kogan and David Shafer “reluctantly sold $42 million worth of shares, a week after trying to sell around $100 million worth in a botched deal.
The sale of the smaller parcel was done at $7 a share, so the buyers are nursing some nasty losses in around six weeks.
But that sale price compares to the $9.80 the shares were trading at in the first week of June when Kogan revealed it was going to be selling whitegoods and kitchens. The larger sale (of around $100 million worth of shares) came amid the strong market reaction to that sales news.
The shares ended down 11.7% at $5.84, so there are some investors wearing big losses.
Founder and CEO Ruslan Kogan said in Tuesday’s statement that the company “finished the financial year with a strong quarter of continued growth”.
“We are excited about all 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”.
Kogan said it had 1.388 million active users at June 30, compared with 955,000 at the end of June 2017. The company said it had cash of $41.99 million at June 30 and access to a bank credit line of a further $10 million.
The company said “Revenue growth in FY18 compared with FY17 is greater than 40% (FY17 revenue was $289.5 million).
“Unaudited management accounts reflect the following earnings performance: EBITDA growth in FY18 compared with FY17 is greater than 90% (FY17 Pro Forma EBITDA was $12.5 million).”
Inventories of $50.2 million at June 30 were down $4.5 million from March 31.
