Inventory for the combined business reduced from about A$21m ($25.2m) to A$10m ($12m), in what the business described as a deliberate decision to exit lower-quality sales.
Mighty Ape NZ reported a net loss before tax of A$10.4m ($12.48m), worse than the A$7.4m ($8.88m) loss it made in the year prior.
Ruslan Kogan, founder and chief executive of Mighty Ape’s parent company Kogan, said Mighty Ape’s focus during the year was on its operational reset to return the business to profitability.
“At Mighty Ape, we have spent the year simplifying the business and improving its efficiency, creating a stronger foundation from which to deliver great value to New Zealand customers,” Kogan said.
Kogan bought Mighty Ape, based in Silverdale north of Auckland, for A$122m ($146.38m) in 2020. Last year Kogan wrote down the value of its acquisition by A$46.3m ($55.55m).
Mighty Ape and Kogan have been approached for comment.
Job losses
A major development quietly announced as part of the result was that operations had ceased at the company’s Christchurch distribution centre.
Mighty Ape built and opened the 5500sq m warehouse near the city’s airport in 2023, promising same-day or overnight delivery for thousands of products.
The company said the closure delivered fixed cost savings, although neither the specific amount nor the number of staff who lost jobs as a result is known.
However, the company’s financial statements show warehouse expenses fell from A$1.19m ($1.43m) in 2025 to A$629,000 ($755,000) in 2026.
Assets for the NZ segments fell significantly from A$30m ($36m) in 2025 to A$13.1m ($15.72m) in 2026, a reduction of A$16.9m ($20.28m) year-on-year.
Kogan’s investor presentation confirmed fixed costs for the total Mighty Ape business had reduced 12.9% year-on-year.
People costs for the New Zealand business fell from A$15.8m ($18.96m) to A$13.2m ($15.84m), suggesting savings of A$2.6m ($3.12m) year-on-year.
Outlook
Kogan also gave a performance update for the first month of the 2027 financial year, with unaudited accounts for July 2026 showing Mighty Ape gross sales of $8.6m ($10.32m), down 17.1% year-on-year.
Revenue for the month fell 39% year-on-year to A$5.3m ($6.36m).
The company said the priority for Mighty Ape would be building on progress made through the operational reset and generating sustainable, profitable sales.
The wider Kogan Group business reported total group revenue of A$510.7m ($613m), up 5% year-on-year, earning a statutory net profit after tax of A$11.2m ($13.44m).
Kogan shares were down A70.9c (85c), or 15.74% by mid-afternoon NZ time to A$3.81 ($4.57).
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
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