Australian online retailer Kogan has reported it is set to return to profitability after experiencing a difficult first half of the financial year.

Kogan’s latest stats show losses doubled and sales dropped by almost 35 per cent during the period. 

The company says it stocked up its warehouses to prepare for potential supply chain disruptions caused by the COVID-19 pandemic, but when consumers returned to shopping in malls, sales slumped. 

However, Kogan announced on Monday that it had returned to profitability in January, achieving its first monthly positive adjusted EBITDA since July 2022.

In the first half of the financial year, revenue was down 34.3 per cent at $275.6 million, compared to the prior year when lockdowns forced consumers to shop online. Adjusted EBITDA was a loss of $4.4 million, down 125 per cent. 

However, Kogan reduced its total inventory to $98.3 million as of December 31, compared to $159.9 million as of June 30 and almost $200 million a year earlier. 

The adjusted net loss for the half-year was $9.6 million, while statutory losses widened to $23.8 million from an $11.8 million loss a year ago, which included non-cash items such as equity-based payments and one-off non-recurring items.

Kogan's founder and CEO, Ruslan Kogan, did not provide any full-year guidance, but stated that the unaudited accounts for January showed a return to adjusted profitability this half.