Kogan shares plunge following $25.9m loss

The news: Online retailer and service provider Kogan has posted a statutory net loss of $25.9 million after tax for the year, wiping about 14% from its share price in early trading before recovering slightly.

The numbers: The profit result was a 27.1% improvement on a $35.5 million loss last year, and the group said a second-half return to adjusted net profitability of $1.9 million showed the impact of the business's evolution. Gross sales and revenue were down by 28.4% and 31.9% respectively, which Kogan linked to trading conditions and a 57% reduction in inventory to meet demand. Earnings per share narrowed from a 33 cent loss to 24 cents down. Kogan shares were fetching $5.060 (-11.38%) at midday AEST.

The context: Kogan said soft trading conditions catalysed by cost of living pressures and high interest rates had affected sales in Kogan Marketplace and Mighty Ape. The group reported growth in its Kogan First benefits program, a return to growth in Kogan Mobile, and rapid growth in Kogan Money and Kogan Energy. Kogan also acquired online furniture retailer Brosa in FY23.