Site menu

Search by ticker code:
Generic filters


Search by ticker code:
Generic filters

Search by ticker code:
Generic filters (ASX:KGN) share price soars 16% on strong HY24 update

The Ltd (ASX: KGN) share price has gone bananas. It’s up by 16% today after releasing its FY24 first-half update.

This company sells a wide array of products on its website, as well as other services like mobile, internet and insurance. It also owns the online NZ business Mighty Ape.

Strong profit growth

Kogan’s unaudited management accounts showed gross sales of $445.4 million, which represented a decline of 5.6% year on year after “optimisations” of its quality of revenue and the focus on platform-based sales, which resulted in a significant reduction in inventories. Kogan is working on becoming a capital-light business, which may be a big help for the share price over time.

Impressively, gross profit improved 42.1% to $89.5 million thanks to a 13.2 percentage point improvement of the gross profit margin to 36% thanks to its growing proportion of platform-based and improved profitability of in-warehouse inventory sales after the prior sell-through of excess inventory.

Platform-based sales for (excluding Mighty Ape) grew to 62.8% of gross sales. A key contributor has been the new advertising platform, which achieved $1.3 million of advertising revenue in the half.

Active customers came to 2.74 million at 31 December 2023, being 2 million for and 718,000 for Mighty Ape. Kogan First subscribers reached 466,000 at December 2023, up from 404,000 at December 2022. Might Ape Primate subscribers rose to 24,000 at December 2023, up from 16,000 at December 2022.


Kogan generated $19.3 million of EBITDA (EBITDA explained) in HY24, compared a loss of $23 million in the first half of FY23.

It made $11.8 million of EBIT in HY24, compared to an EBIT loss of $31.3 million in HY23. This level of improvement is great and likely a big driver of the share price.

Balance sheet

It ended December 2023 with $83.3 million of cash and no debt, compared to net cash (after borrowings) of $74 million at December 2022.

Kogan finished the period with inventory of $68.2 million, a reduction of 30.6% year on year thanks to the shift to a more capital-light business.

Final thoughts on the share price

The business aims to offer people a competitively-priced product, so it may be able to excel during a time period like this where people are looking for bargains.

If can keep growing its platform-based sales, then its margins and overall profit could keep rising. That would be a really good outcome and enable the share price to rise over time.

It could be underrated today if its profit increases significantly in the coming years, but there’s no guarantee of that considering how the last few years have gone.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, Jaz does not have a financial or commercial interest in any of the companies mentioned.
Skip to content