Kogan.com Business Update

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  1. 74.0k
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    Record half including record breaking Black Friday week and Active Customers
    surging past three million
    Kogan.com Limited (the Company; Kogan.com; ASX: KGN) business growth continued
    at a strong pace during the Christmas trading period, with 7 of the 10 biggest trading
    days ever occurring within the period surrounding Black Friday. The Company tackled
    some significant challenges caused by extreme growth and is progressively integrating
    the newly acquired Mighty Ape team and operations, all while assisting the community
    by making significant donations to assist with the COVID-19 response.
    During the key Christmas sales periods, more Australians than ever shopped at
    Kogan.com and the Business now has over 3 million active customers.
    1HFY21 Highlights across the Kogan Group (including Kogan.com and Mighty Ape )
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    ● Gross Sales grew by more than 96%
    ● Gross Profit grew by more than 120%
    ● Adjusted EBITDA
    2 grew by more than 175%
    ● EBITDA grew by more than 140%
    ● Cash at period end was A$78.9M with A$1.4M of the Group’s debt facility
    3
    drawn within Mighty Ape
    ● Active Customers was 3,003,000 for Kogan.com and 719,000 for Mighty Ape
    3 Cash held by Mighty Ape at 31 December 2020 was converted using a spot rate of 0.9376.
    2 Adjusted EBITDA is a measure of the underlying performance of the business, it removes non-cash items
    including the unrealised FX gain/(loss), equity-based compensation and one-off non-recurring items. In
    respect of 1HFY21: there is a significant unrealised FX loss at financial period end driven by the rise in the
    AUD; there are significant equity-based compensation expenses driven by the recent awards of options
    after the Company’s AGM in November 2020; there is a material donation of PPE by the Company to
    Australian charities; there are material logistics demurrage charges driven by one-off warehousing and
    supply chain interruptions from late 2020; and there is a write-down of PPE held by Kogan.com following
    the reduction in COVID-19 cases in Australia.
    1 The results reflect the inclusion of Mighty Ape’s results for the one month period of December 2020.
    Black Friday sales were record breaking and a sign of shifting Christmas purchasing
    behaviour and growth in eCommerce penetration:
    ● The Business had its first $30m+ week and $40m+ week and $50m+ week of
    Gross Sales in the same week. Black Friday Week (23 November to 29 November
    inclusive) Gross Sales were greater than $50m.
    ● Gross Sales on Black Friday (27 November) were greater than $15m for the single
    day, the biggest day in the history of the Business.
    ● Through Black Friday week, the Business sold 470,000 items to 253,000 unique
    customers.
    ● On Black Friday the Business sold 124,000 items to 63,000 unique customers -
    more than an item per second through the entire day.
    ● Kogan Marketplace had its first $10m+ week of Gross Sales in Black Friday week.
    ● Matt Blatt had its first $1m+ week of Gross Sales in Black Friday week.
    Kogan.com Founder & CEO, Ruslan Kogan, said he was proud of the way the team
    continued to delight customers while dealing with the exciting challenges of scaling
    the business through a period of extreme growth:
    “We are proud to have delivered another record half while undertaking
    significant investments into the future of the business. I am so proud of how our
    team is navigating extreme growth within our core business, and responding to
    the fast-changing economic, health and supply-chain environment. We
    delivered our largest acquisition to date, in Mighty Ape and expanded the
    Kogan.com community of members to more than 3 million active customers.
    We are investing into building strong customer relationships by expanding our
    logistics capability, our marketing reach and our systems and infrastructure -
    giving us the foundation to continue delighting customers as the business
    further scales.
    “The Black Friday week saw some of the most extraordinary trading we have
    ever seen - with 7 out of our top 10 days ever occurring during the Black Friday
    period. Customers have come to rely on Kogan.com to deliver their Christmas
    shopping needs, and we are proud to have satisfied well over a million happy
    shoppers this Christmas period. Keeping up with the extreme demand is an
    engineering, supply chain, and logistical challenge that our team loves working
    on and solving”.
    The Company provides the following business update which, where applicable, is based
    on unaudited management accounts for 1HFY21. Unless otherwise stated, the update
    compares the 1HFY21 accounts to those of the prior corresponding period (1HFY20) . In
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    respect of Mighty Ape, the update is based on December 2020 unaudited
    management accounts, reflecting the period after the date on which Kogan.com’s
    acquisition was effective:
    ● Kogan Group (Kogan.com and Mighty Ape
    1 consolidated):
    ○ Gross Sales grew by more than 96%
    ○ Gross Profit grew by more than 120%
    ○ Adjusted EBITDA
    2 grew by more than 175%
    ○ EBITDA grew by more than 140%
    ○ Cash at period end was A$78.9M with A$1.4M of the Group’s debt facility
    5
    drawn within Mighty Ape.
    ● Kogan.com:
    ○ Active Customers was 3,003,000 as at 31 December 2020
    ○ Gross Sales grew by more than 90%
    ○ Gross Profit grew by more than 115%
    ○ Adjusted EBITDA
    2 grew by more than 165%
    ○ EBITDA grew by more than 130%
    ○ The adjustments to EBITDA (resulting in Adjusted EBITDA) include:
    ౼ a significant unrealised FX loss at financial period end driven by the
    rise in the AUD
    ౼ significant equity-based compensation expenses driven by the recent
    awards of options after the Company’s AGM in November 2020
    ౼ donations of $1.1m of PPE by the Company to Australian charities to
    assist in the COVID-19 response
    ౼ logistics demurrage charges of $1.9m driven by one-off warehousing
    and supply chain interruptions from late 2020 (almost never previously
    incurred, and expected to be resolved from early 2021)
    ౼ a $1.5m write-down of PPE held by Kogan.com following reduction in
    COVID-19 cases in Australia.

    courtesy of Bell Direct
    ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

    DYOR

    i hold KGN 'free-carried'

    i disagree with their virus estimations , i can see more shenanigans as we approach Easter ( remember LAST Chinese New Year )

    1 like
  2. 184
    Posts

    KGN going to test support here - around $15.50

    i will look how it reacts for a possible entry. (or watch it droppppppp)

    1 like
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