We look at how shares in the online shopping company fared last reporting season.
The post Here’s how the Kogan (ASX:KGN) share price responded last reporting season appeared first on The Motley Fool Australia. –
Last year, the Kogan.com Ltd (ASX: KGN) share price was a bellwether of Australia’s consumption habits throughout the pandemic.
Leading into 2020’s reporting season, shares in the online retailer had bolted more than 167% for the year.
Let’s take a look at how the Kogan share price responded last reporting season.
Kogan share price catapults after FY20 results
The Kogan share price actually dropped lower after the company released its results for FY20.
However, as investors digested the company’s results, shares in the online retailer bolted to record highs in the following days.
For the 12 months ending 30 June 2020, Kogan reported blockbuster growth as consumers flocked online.
Highlights from the company’s performance in FY20 included;
Gross sales of $768.9 million, up 39.3% on the prior corresponding period (pcp)
Reveune of $497.9 million, up 13.5% year on year
35.7% increase in its active customer base to 2,183,000
Gross profit of $126.5 million, a up 39.6% on pcp
57.6% increase in adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $49.7 million
Net profit after tax of $26.8 million, up 55.9% on pcp.
Kogan shared the wealth with investors, declaring a fully franked final dividend of 13.5 cents per share.
Kogan’s management highlighted the changing nature of retail consumption and noted the company planned on continuing investment in increasing its active customer base.
Snapshot of shares in Kogan
Leading into this year’s reporting season, the Kogan share price has bolted more than 24% since the start of August.
However, despite its stellar performance this month, shares in the online retailer have struggled this year.
In fact, Kogan shares have nearly halved since surging to all-time highs of around $25 per in October last year.
There have been several catalysts that are likely to have caused the Kogan share price to plunge in 2021.
The initial catalyst can be traced back to late January when the company released a business update for the first half of FY21.
In the update, Kogan flagged a slower rate of growth than expected.
The second catalyst prompting investors to sell their Kogan shares was another update from the company in late May.
In that update, Kogan informed shareholders that it expected to report adjusted EBITDA of $58 million to $63 million in FY 2021.
In comparison, market consensus estimated Kogan’s EBITDA for FY21 to be around $70 million.
Investors will be keeping a keen eye on the Kogan share price with the eCommerce company scheduled to report its results for the full year tomorrow.
Should you invest $1,000 in Kogan right now?
Before you consider Kogan, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Kogan wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of August 16th 2021
Motley Fool contributor Nikhil Gangaram owns shares of Kogan.com ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.