KGN +7.22%: a strong move higher for the e-commerce business on a reasonable 3Q update which came with a surprise buyback. Adjusted EBITDA for the quarter was $4.4m, which compared to a $4.4m loss in the first half, benefitting from an improved inventory position. Inventory has now fallen to $78.3m, around 20% down from the end of 2022. Despite sales falling 28% yoy, gross margins improved as Variable & Marketing costs fell from 10% to 8.1% of total sales. The main kicker was the buyback which aims to purchase 10% of shares on issue which comes despite the company noting a softer outlook of reduced consumer demand and a cash balance of $49.1m which was down in the quarter.
MM is neutral/negative KGN
Add To Hit List
