Kogan have just released their quarterly business update. Highlights are:

Inventories reduced to $132.1 million (comprising $109.3 million in-warehouse and $22.8 million in-transit) as at 30 September 2022, from $159.9 million (comprising $137.9 million in-warehouse, and $22.0 million in-transit) as at 30 June 2022.

○ The sell-through of inventory, and tight controls on costs, has supported the growth of our net cash balance (after loans & borrowings), ending the quarter with $23.8 million.

• ● Gross Sales declined 38.8% YoY to $202.3 million, while cycling a period in the prior year that included lockdowns
• ● Group Active Customers declined 12.3% YoY to 3,596,000 as at 30 September 2022
• ● Kogan First Subscribers grew by 48.8% YoY to 385,000 as at 30 September 2022
• ● Kogan Mobile2 Active Customers grew 5.1% YoY as at 30 September 2022
• ● Gross Profit declined 40.4% YoY to $31.3 million, impacted by lower Gross Margins following the accelerated sell-through of excess inventory the vast majority of which the Company expects to complete by early calendar year 2023
• ● Adjusted EBITDA was $(0.3) million
• ● Adjusted EBIT was $(4.1) million

Held IRL and SM - It will be interesting to see how sales track with focus on reducing inventories coming under control.