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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Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
