Kogan’s sales and profit soar; Mighty Ape’s turnaround shows progress

Sean Cao

25 seconds ago

Kogan Group has reported higher sales and profit for the last fiscal year, as its core Kogan.com business achieved double-digit growth across key metrics while Mighty Ape remained in negative territory.

The group’s gross sales jumped 12 per cent in the year ended June 30, exceeding $1 billion, while revenue rose 5 per cent to $510 million.

Kogan.com recorded a 16 per cent growth in both annual gross sales and revenue. Meanwhile, Mighty Ape’s gross sales fell 14 per cent and revenue plunged 30 per cent amid an operational reset.

Group statutory net profit after tax was $11.2 million, including a $16.3 million profit from Kogan.com and a $5.1 million loss from Mighty Ape.

Management said the strength at the core Kogan business was supported by AI-driven processes and automation across its operations, which helped drive both margin expansion and greater operating efficiency.  

The increased operating efficiency enabled greater investment in marketing to drive further growth, while continuing to expand earnings margins, they added.

Over at Mighty Ape, a “significant operational reset” continued during the fiscal year, focusing on optimising inventory, rationalising unprofitable categories, and simplifying the cost base. 

Over the period, the New Zealand-based site reduced its inventory from $21 million to $10 million, while operations ceased at its Christchurch warehouse. These initiatives helped cut quarterly fixed costs from $4.9 million to $3.4 million, and returned the business to positive adjusted EBITDA in the fourth quarter.

In addition, platform-based sales across Mighty Ape Marketplace, Primate and Mighty Mobile continued to grow, increasing the contribution of higher-margin revenue streams.

For FY27, the group will remain focused on disciplined growth at Kogan.com and build on the progress made through Mighty Ape’s reset to generate sustainable sales.