KOGAN SMASHES FORECAST

ONLINE retailer Kogan (ASX: AGN) has beaten expectations and exceeded its own full year forecast in the first half of FY17.

Kogan's pro-forma first half profit totaled $3.7 million, beating its pro-forma full year profit forecast of $2.5 million.

Kogan's had pro-forma earnings before interest, taxes, depreciation and amortisation (EBITDA) of $7.3 million, more than $4.5 million greater than the prior corresponding period.

Statutory profit was down 12.5 per cent to $1.5 million, which excludes the costs of its listing in July last year.

Marketing spend was higher than expected for the company, but Kogan claims it's because of greater return on investment in its marketing efforts. Targeted marketing is key to Kogan's edge. Kogan's proprietary personalisation platform delivered around 5 per cent total sales in the first half.

"It's been a good half and the business has never been in a better position to spread its wings and continue on with its trajectory," CEO and founder Ruslan Kogan told investors in a conference call this morning.

Kogan is paying its shareholders a fully franked dividend of 3.9c per share.

The company has also upgraded guidance, once again, and is targeting pro-forma EBITDA in the range of $10.5 million and $11.5 million for the full year.

Business News Australia