Online marketplace Kogan.com continues to struggle, despite putting a happy face on its March quarter financials.
Kogan is claiming three consecutive months of underlying profitability, reported as a “return to positive adjusted EBITDA”, having reduced its bloated inventory levels to $78.3 million at the end of the quarter, down from 193.9 per cent a year prior.
Gross margin increased 6.5 points to 31.6 per cent over the quarter, due to the reduction of the company’s discounting to clear the warehouse bloat.
The e-retailer also announced an on-market share buyback program, up to 10 per cent of issued ordinary shares, which will start May 12 and carry through for a calendar year.
That’s about all the good news for shareholders.
Kogan.com reported an $8.1 million loss for its earnings before interest and tax for the quarter.
Gross profit is down 16.5 per cent, from 41 million a year prior to $34.4 million.
Sales fell 28 per cent, to $188.7 million, due to “soft market conditions caused by interest rate rises and inflationary pressure”, according to the company.
“After a series of challenging periods, I’m proud that Kogan.com has returned to sustained underlying profitability, reflecting the efforts of our brilliant team and the agile and robust business we have built,” said Ruslan Kogan.
“The journey to get here has been one of the toughest in our 17-year history, but also one of our most rewarding. It goes without saying – we are a far stronger company today than ever.”
