Australian online retailer Kogan.com Limited (ASX: KGN) has achieved three consecutive months of positive Group Adjusted EBITDA over 3QFY23. The return to profitability comes after a year of optimisation and refocusing, including inventory reduction to AU$78.3 million, rationalisation of inventory categories, renegotiation of supplier contracts, and recalibration of marketing spend. The company's efforts to achieve profitability were impacted by subdued sales activity, which reflected interest rate rises and inflationary pressures across the economy.
Despite the challenges, the company concluded the quarter with a strong balance sheet, supported by AU$49.1 million of net cash. Kogan.com founder and CEO Ruslan Kogan said the company was now a far stronger entity and dedicated to delivering incredible value to its millions of customers across Australia and New Zealand. Gross sales of AU$188.7 million declined 28% YoY due to soft market conditions, but gross margin improved 6.5pp to 31.6%.
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