Online retailer Kogan.com has confirmed that gross sales fell 22% during the past financial year.
Unaudited management accounts as of 30 June 2023 reveals that the business has managed to reduce bloated stock levels to $68.2M what’s not been revealed is the age of the stock.
This consists of $60.6 million in-warehouse and $7.6 million of stock in-transit.
The Company claims this represents a 57% reduction from previous levels when inventories totalled.
$159.9 million (comprising $137.9 million in-warehouse and $22.0 million in-transit).
“The inventory levels reflects a complete rightsizing of inventory to current levels of demand” the Company claims.
Cash reserves have grown $65.4 million as of 30 June 2023, compared to a net cash balance (after loans & borrowings)
of $31.2 million as of 30 June 2022.
The growth in cash balance has been delivered after the total repayment of bank debt, completion of Mighty Ape Tranche 3 payment and the payment of more than
$10m in respect of the share buyback program that commenced in May 2023.
The Melbourne based business has reported that they have 2,945,000 customers on their databased as of 30 June 2023 (Kogan.com had 2,190,000 Active
Customers and Mighty Ape had 755,000 Active Customers).
The online business expects to post adjusted EBIT (excluding one-off costs) of $3 million over the second half of financial 2023, versus a loss of $8.3 million in the prior corresponding six-month period.
It said gross sales fell 22.5 per cent over financial 2023 to $373.7 million as interest rate rises hurt consumer spending. It said it expects to return sales growth in financial 2024.
“Our focus on driving efficiency in the business means that we are now more agile than ever, with a low cost-of-doing-business, combined with a market leading offering across millions of products, and all the essential services,” said chief executive and founder Ruslan Kogan.
