Kogan.com says its performance during the quarter ended 31 March 2023 reflects subdued sales activity due to interest rates and inflationary pressures, with sales down 28% year-over-year to $188.7 million.
Despite the decline in sales, Kogan.com reported three consecutive months of positive group adjusted EBITDA, as a result of optimising and refocusing the business to align with changing trading conditions over the past year. Inventories have been reduced by more than half to $78.3 million as at 31 March 2023 compared to $193.9 million at 31 March 2022, after right-sizing inventory levels to match demand.
Kogan.com founder and CEO, Ruslan Kogan said, “After a series of challenging periods, I am proud that Kogan.com has returned to sustained underlying profitability, reflecting the efforts of our team and the agile and robust business we have built. In these current tough economic conditions, we are a proven and loved shopping destination that helps millions of shoppers save on products and essential services.”
However, the company reported adjusted earnings of $4.4 million, against a loss of $800,000 for the same period last year, but earnings before interest and tax were a loss of $8.1 million.
Gross margin increased 6.5 points to 31.6% over the quarter with a stop to significant discounting to sell-through aged stock and an increased proportional contribution from Kogan Marketplace and Kogan First commission streams.