The Kogan.com Ltd (ASX: KGN) share price is pushing higher on Thursday afternoon.
At the time of writing, the ecommerce company's shares are up 3% to $9.14.
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Why is the Kogan share price pushing higher?
Investors have been bidding the Kogan share price higher this afternoon following the release of its annual general meeting presentation.
That presentation included an update on its performance in FY 2022 and its aspirations for the next five years.
And judging by the Kogan share price reaction, investors liked what they saw.
How is Kogan performing?
According to the release, Kogan has delivered sales growth during the first four months of FY 2022. Gross sales including Mighty Ape are up 19.2% to $432.7 million. Excluding Mighty Ape, sales are up a more modest 4.8% to $380.7 million.
Kogan's Founder and CEO, Ruslan Kogan, commented: "Based on unaudited management accounts, we are proud to have delivered another period of top line growth."
Another positive is the work the company has done to tackle its inventory issues. Mr Kogan revealed that it has right-sized its inventory levels since the end of FY 2021 and brought warehousing costs down.
At the same time, Kogan has continued to strategically invest for long-term growth through expanding marketing activity to grow the Kogan First member base. The Chief Executive is confident this will have long-term benefits for the company.
In addition, the Kogan Marketplace and Kogan First offerings have performed strongly. Mr Kogan believes this leaves the company well placed to drive growing sales through the key Christmas trading period of November and December.
However, this hasn't translated into profit growth. Adjusted EBITDA including Mighty Ape is down 61% year to date to $12.4 million. Excluding Mighty Ape, adjusted EBITDA is down 70.3% to $9.5 million.
Five-year targets
Also potentially giving the Kogan share price a boost today is the unveiling of the company's five-year aspirational growth targets.
Ruslan Kogan commented: "When we listed the Company, we had just over $200m of Gross Sales, and in five years we have managed to grow to more than $1 Billion in Gross Sales. Five years on, and taking a moment to look forward across our next five year plan – we aim to achieve $3 Billion in annual Gross Sales and 1,000,000 Kogan First Subscribers by FY26."
This implies a 20% compound annual growth rate for gross sales over the five years.
"I believe we can do this by continuing to re-invest in our customers. Ensuring that our customers get the best deals, on a wide range of products, delivered quickly and efficiently. The trust and confidence we build with our customers will have customers coming back to our platform time and time again," the CEO added.
