Online marketplace Kogan has seen a double-digit fall in gross profit and revenue for the first half of the financial year.
The company’s gross sales declined by 32.5% to $471.1 milion with revenue declining 34.3% to $275.6 million.
Kogan cited unprecedented discounting to right-size inventory for the result.
“We’re pleased to be emerging from a turbulent few years," CEO Ruslan Kogan said. "The ship has steadied, we have a renewed focus on the ruthless efficiency that’s underpinned our entire existence, and we have doubled down on delivering great value for customers."
Kogan reduced its operating costs in January 2023 by 22.1% year-on-year, reflecting the company’s inventory rationalisation program last year.
Kogan’s inventory was reduced to $98.3 million (comprising $84.1 million in-warehouse and $14.2 million in transit) as at December 31, 2022, from $159.9 million (comprising $137.9 million in-warehouse, and $22.0 million in transit) as at June 30, 2022.
The Kogan First loyalty program grew to over 404,000 subscribers as at December 31, 2022, with revenue increasing to $10.8 million, up 83.1% YoY.
Growth of the program is said to be underpinned by a strong renewal rate of over 75% in 1H FY23.
Kogan is planning to launch additional verticals in the second half of the year to drive growth, as well as enhancing its existing Kogan Marketplace.