Kogan sales drop, new CFO appointed for Mighty Ape

Rakshnna Pattabiraman

27th Apr 2023

Trans-Tasman online retailer Kogan says that despite a drop in sales the company has returned to “sustained underlying profitability” in its third quarter after a challenging trading period.

For the three months to March 31, gross sales reached $188.7 million – a decline of 28 per cent – and gross profit was down 16.5 per cent to $34.3 million. The company said its performance continues to be impacted by soft market conditions caused by interest rate rises and inflationary pressure.

Adjusted earnings before interest, taxes, depreciation and amortisation were $4.4 million while inventory levels were reduced to $78.3 million.

The number of active customers reached 3.05 million and the number of Kogan First subscribers grew by 24.3 per cent to more than 407,000.

Kogan founder and CEO Ruslan Kogan said: “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.”

The company says it will implement further operational efficiencies in the remainder of the financial year since its return to profitability this quarter is largely due to its consistent “optimising and refocusing” of the business for more than a year.

Meanwhile, the retailer has appointed Dan Balasoglou as the new CFO of Mighty Ape, effective next month. Balasoglou has spent more than 10 years at Lotto NZ, where he led a large team as the CFO.

• Further reading: Kogan reduces inventory levels as sales soften in first-half