The Kogan.com Ltd (ASX: KGN) share price will be on watch this morning after the online business revealed its July 2020 numbers.
Kogan.com is an online retailer which offers a variety of products of services including electronic devices, appliances, travel, insurance and superannuation. It aims to be a low-cost provider of many different categories.
Kogan.com’s strong growth
Kogan.com revealed its monthly update for July 2020 showing it added another 126,000 active customers over the month to finish with 2.31 million.
July gross sales increased by more than 110% year on year. Gross profit rose by over 160%.
Adjusted EBITDA (click here to learn what EBITDA means) was more than $10 million for the month.
A couple of months ago Kogan.com said that the average adjusted EBITDA in the fourth quarter of FY20 was $7 million per month in April and May, with June adjusted EBITDA of $7.9 million. So over $10 million is large increase compared to around $8 million in the previous month.
The company reminded investors it’s expecting to release its full year result on 17 August 2020. It’s expecting to show a lot of revenue growth in FY20.
Summary
Kogan.com has been impressive for shareholders since the worst of COVID-19. Its online offering is really resonating with customers. It seems Kogan.com’s profit is growing a lot at the moment. I’m not sure how many customers will stay shopping online once COVID-19 is over. Maybe it’s a permanent shift. There are other ASX growth shares I’d prefer to buy first like Bubs Australia Ltd (ASX: BUB), but Kogan.com could be worth watching.
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