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.<\/p>\n
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.<\/p>\n
Ruslan Kogan, founder and chief executive of Mighty Ape\u2019s parent company Kogan, said Mighty Ape\u2019s focus during the year was on its operational reset to return the business to profitability.<\/p>\n
\u201cAt 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,\u201d Kogan said.<\/p>\n
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<\/a> ($55.55m).<\/p>\n Mighty Ape and Kogan have been approached for comment.<\/p>\n Job losses<\/p>\n A major development quietly announced as part of the result was that operations had ceased at the company\u2019s Christchurch distribution centre.<\/p>\n Mighty Ape built and opened the 5500sq m warehouse near the city\u2019s airport in 2023, promising same-day or overnight delivery for thousands of products.<\/p>\n 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.<\/p>\n However, the company\u2019s financial statements show warehouse expenses fell from A$1.19m ($1.43m) in 2025 to A$629,000 ($755,000) in 2026.<\/p>\n 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.<\/p>\n Kogan\u2019s investor presentation confirmed fixed costs for the total Mighty Ape business had reduced 12.9% year-on-year.<\/p>\n 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.<\/p>\n Outlook<\/p>\n 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.<\/p>\n Revenue for the month fell 39% year-on-year to A$5.3m ($6.36m).<\/p>\n The company said the priority for Mighty Ape would be building on progress made through the operational reset and generating sustainable, profitable sales.<\/p>\n 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).<\/p>\n Kogan shares were down A70.9c (85c), or 15.74% by mid-afternoon NZ time to A$3.81 ($4.57).<\/p>\n