Kogan shares soar as it eyes swing to profit

The news: Shares in Kogan.com surged 14.9% to $5.02 before midday AEDT, after the ecommerce play posted improved earnings, margins and subscriber numbers in the first half.

The numbers: Kogan lifted 1H gross profit by more than 42% to $89.5 million, thanks to a 13.2% increase in gross margins. Adjusted earnings before interest, taxes, depreciation, and amortisation surged to $21.5 million from a $4.4 million loss in 2023's equivalent half. Kogan First subscriber numbers grew 15.3% to 466,000, and the company's new advertising platform brought in $1.3 million in revenue for the half.

The context: Kogan has been on a recovery path after posting a statutory net loss after tax of $25.9 million for the 2023 financial year, amid tough retail trading conditions, weakness in its mobile business and the acquisition of online furniture retailer Brosa.

What they said: "Having returned the business to a position of stability and strength, our unwavering focus remains on enabling Aussies and Kiwis to live their best lives," CEO Ruslan Kogan said in a statement.