Kogan shares tumble after early rise on FY earnings
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More news: Shares in Kogan.com tumbled after initially rocketing after the release of the online retailer's full-year earnings.
Kogan shares were down 1.6% to $4.28 by 12:05pm AEST after a double-digit rise at the start of trading.
The company's unaudited accounts for the year offered a mixed picture, as gross profit and adjusted EBIT in FY24 gained on last year's result, but gross sales and revenue fell.
Kogan shares soar on full-year profit boost
The news: Shares in Kogan surged on the ASX after the online retailer notched full-year profit and earnings growth, boosted by cost-of-living pressures driving customers to its site.
The numbers: In a business update based on unaudited management accounts, Kogan said full-year gross sales dipped 4.8% to $808.9 million year on year, while revenue dropped 6.1% to $459.7 million.
However, gross profit rose 23.2% to $168.4 million and adjusted EBIT of $25 million swung from a loss of $9.8 million in FY23.
Kogan's loyalty program Kogan FIRST, which launched four years ago, grew to over 502,000 subscribers at 30 June, representing a 25% uplift year on year.
On a quarterly basis, gross sales lowered 1.5% to $184.1 million compared to the prior corresponding period. Revenue edged higher, up 0.2% to $105.6 million, as did gross profit, up 1.5% to $39.9 million. Fourth-quarter adjusted EBIT rose from $2.8 million to $5.7 million.
Kogan shares were up 11.5% to $4.85 after market open, having shed nearly 25% over the past 12 months.
The context: The Melbourne-based retailer noted that from FY25, the company intends intends to change both the scheduled frequency and content of its business updates, which will consolidate various individual components of gross sales, remove periodic updates to balance sheet items, and no longer include regular updates on customer numbers and subscribers.
Kogan's full-year results are due on 26 August.
What they said: Kogan's founder and CEO Ruslan Kogan said: "Cost of living pressures are driving customers to Kogan.com and we're working harder than ever to ensure we save our customers a lot of money."
"While Kogan FIRST subscribers are saving a lot of money shopping online, they are also recognising that if their essential services like phone plan, electricity of NBN isn't with Kogan.com, then they're probably paying too much," he said.
The source: ASX announcement
