Australia's Kogan.com likely to improve EBITDA margins in FY23 - Morningstar

Kogan.com

30/09/2022 04:49

** Morningstar expects online retailer Kogan.com Ltd
 KGN.AX  to improve its FY23 EBITDA margins as its focus remains
on cost efficiency 
    ** Brokerage continues to expect KGN's top line growth to
reignite in FY23 after exceptionally strong COVID-19-induced
prior period sales growth passes
    ** Sees group gross sales increasing by 5% in FY23 and
average 6% per year over the next decade
    ** Says activity around Kogan First, co's loyalty program,
is likely both dampening near-term profitability and enhancing
long-term shareholder value
    ** Expects Kogan First membership to generate long-lasting
revenue stream for co if members are retained 
    ** Says KGN is far ahead on its supply chain, operational
automation, IT, and sourcing capabilities compared with new
entrants and most traditionl retailers 
    ** None of eight analysts rate the stock "buy" or higher,
four "hold" and four "sell" or lower; their median PT is A$3.85
– Refinitiv data
    ** Stock has fallen 64.4% this year as of last close 
 (Reporting by Echha Jain in Bengaluru)
 ((Echha.jain@thomsonreuters.com))