Kogan (ASX: KGN) tried to hide a sharp decline in earnings, with just five words in today's business update saying “Adjusted EBITDA was $21.7 million”.
Sifting back to its first half FY21 results, the company delivered $51.7m in adjusted EBTIDA.
Why not just tell us that earnings declined -58%?
In a business update titled “Gross Sales and Revenue exceeded FY21’s record first half”, Kogan pushed the view that its top-line was growing strongly, with customers growing 10% year-on-year to $4m and sales growing 9% to $698m.
The encouraging top-line figures failed to trickle down to the bottom line, with gross profit down 4.4% to $112.4m.
Continuing supply chain interruptions, increased logistics costs and higher marketing expenses weighed on profitability.
Kogan shares have a strong track record of falling off a cliff after a business update (% on day of announcement).
25 November: Annual General Meeting (-4.3%)
20 October: Business Update (+6.7%)
24 August: FY21 results (-15.5%)
21 July: Business Update (-1.5%)
21 May: Business Update (-14.6%)
23 April: Business Update (-14.3%)
26 February: 1H21 results (-10.4%)
29 January: Business update (-8.5%)
Kogan shares plunged -17.5% this morning, trading -4.5% lower at noon.
Finance Writer & Social Media
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