Kogan reduces inventory levels as sales soften in first-half
Trans-Tasman online retailer Kogan says it is on track to restore profit levels, despite subdued sales during the first half.
For the six months to December 31, gross sales declined 32.5 per cent to $471.1 million while EBITDA reduced to $23 million. Tax-paid profit fell to $23.8 million.
The company said active customers across the group (excluding its Brosa division) reached 3.32 million.
Inventory levels have now been substantially “right-sized” with most excess items now sold, leading to about $98.3 million in stock at the end of the period.
Revenue from verticals all increased: Kogan Mobile Australia by 5.9 per cent, the New Zealand Mighty Ape business by 75.3 per cent, and Kogan Money (credit cards) by 6.9 per cent respectively.
Ruslan Kogan, founder and CEO, said the company delivered on “multiple fronts” during the first half, adding: “We have a renewed focus on efficiency that’s underpinned our entire existence, and we have doubled down on delivering great value for our customers.”
In December, the retailer bought online furniture chain Brosa for $1.5 million after it collapsed into voluntary administration.
The company also relaunched its travel and insurance arms.
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