Kogan’s results presentation, released today, reveal a Cash Operating Loss of $63.1m for the year versus a profit of $45.6m in the prior period. No wonder no dividend has been declared.

Drilling down to the notes (note 19) it appears that a large part of the cash loss was caused by an increase in Inventories. Comparing inventory to sales for the year it appears that Kogan had roughly 3.5 months of inventory on hand at 30 June 2021, compared to 2.7 month the previous year. An additional c.$50m drain on cash reserves (out of a total inventory cash outflow of $87.5m). Other notable expenses were $20m for performance rights and shares and $12m for increase in acquisition costs.

The simple bottom line is Kogan’s 2020 Cash Operating Profit of $45.6m declined by $108.7m to a loss of $63.1m in 2021.

I think the plummeting share price is no surprise given these results and management’s failure to address these issues.