Shares in Kogan.com Ltd (ASX: KGN) have been struggling on the ASX this year. Having started 2021 at $19.42, the Kogan share price is currently $10.86.
So, what's been driving the e-commerce company's shares lower? Let's take a look.
Image source: Getty Images
Kogan share price in 2021
The ASX has heard price-sensitive news from Kogan 4 times this year, and each time its share price has fallen in the aftermath.
First business update
The first piece of news from Kogan was a business update that saw its shares fall by 8.4%.
On 9 January, Kogan released an update on its performance for the first half of the 2021 financial year.
Kogan posted increased profits and sales, but it also highlighted $3.4 million worth of charges. These included a logistics charge after a supply chain and warehousing interruption and a write-down of personal protective equipment inventory due to a drop in the number of COVID-19 cases in Australia.
Half-year results
Kogan released seemingly strong half-year results in late February.
Kogan's gross sales had increased by 97.4%, while its revenue had increased by 88.6%.
Kogan's adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) grew by 184.4%, reaching $51.7 million. The company also announced it had surpassed 3 million active customers.
The results saw the Kogan share price fall by 10.3%.
Second business update
In April, Kogan released an update for the quarter ended 31 March. The update saw its share price fall again – this time by 14.2%.
Within the update, Kogan shared its gross sales had once again increased – this time by 47%. Additionally, its revenue was up by 41% and its gross profit increased 54%. However, its EBITDA fell by 24% over the quarter.
Final business update
The final time we heard price sensitive news from Kogan was on 21 May, when Kogan downgraded its guidance for the 2021 financial year.
The company stated it had encountered operational challenges. These included excess inventory holdings and increased storage costs, supply chain and logistical issues, increased promotional spending, price inflation of many consumer products, and increased international shipping costs.
As a result, the company downgraded its EBITDA guidance to between $58 million and $63 million. That was down from its previous guidance of $67 million to $72 million.
The final piece of news from Kogan saw its shares fall by 14.2%.
Kogan share price snapshot
It goes without saying the Kogan share price has been having a tough time on the ASX lately.
Since this time last year, Kogan shares have fallen 29%. However, they have managed to gain 8.8% over the last 30 days.
The company has a market capitalisation of around $1.1 billion, with approximately 106 million shares outstanding.
