Kogan shares are up 5.2% to 4.71% despite the online trader reporting a 6.5% fall in sales to $189.2M in the last quarter.
The good news was that gross profit was $37.4 million an increase of 19.5% YoY, driven by better margins.
Founder and CEO Ruslan Kogan, said: “In addition to returning the Business to a position of continuous profitability growth and financial strength, we’ve launched Mighty Mobile, under the Mighty Ape brand”.
He went on to reveal that the online operator had “Introduced the first ever unlimited-data mobile plans in New Zealand”.
He also claimed that he had delivered 440,000 new customers to their Kogan First program.
He added “We are confident that the incredible deals we have lined up over the coming months will help in the tough
economic times”.
The business delivered gross margin of 36.3%, this was up 9.8% YoY.
Kogan said that this was underpinned by the sell through of excess inventory.
Group Active Customers were 2,864,000 as of 30 September 2023 (Kogan.com had 2,114,000 Active Customers and
Mighty Ape had 750,000 Active Customers).
The business has cash on hand of $56.8 million as of 30 September 2023 with no external debt.
The business has also repaid their previous of bank debt.
Inventory levels as of September 2023 was $72.2 million, this comprised of $63.7 million in-warehouse and
$8.5 million in-transit.
Dr Kennedy, speaking at Senate estimates ahead of the ABS data release, said “in the near term, there will be volatility in headline inflation.”
“We have observed this in other countries, particularly increases in headline inflation driven by petrol, and we are likely to see similar instances in Australia,” he said.
“However, we still expect inflation to steadily fall towards the target band, although its descent towards the target band may be slower than initially expected due to the high petrol prices.”
This would be a cause for concern for RBA governor Michele Bullock, who on Tuesday evening said the central bank would “not hesitate” to hike again if there was a “material” lift in the inflation outlook.
Dr Kennedy also said that a worsening Middle East conflict could trigger a spike in global oil prices that would “quickly” boost inflation and lower growth around the world.
