Kogan Group Gross Sales Pass $1 Billion as Core E-Commerce Offsets Mighty Ape Loss
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Kogan Group lifted annual gross sales past $1 billion in the year ended June 30, driven by double-digit expansion across its core Australian e-commerce platform.
Group revenue rose 5 per cent to $510 million, while statutory net profit after tax reached $11.2 million. The result masked a sharp divergence between the company’s flagship Australian portal and its struggling New Zealand subsidiary.
The main Kogan.com business expanded gross sales and revenue by 16 per cent during the period, delivering $16.3 million in net profit. Management credited internal automation and AI-driven processes with lowering operational expenses, freeing cash to reinvest in customer marketing while defending profit margins.
Restructuring the New Zealand Arm
Mighty Ape remained a drag on bottom-line earnings, posting a $5.1 million net loss. Gross sales at the Auckland-headquartered online retailer fell 14 per cent, while annual revenue dropped 30 per cent as the group dismantled unprofitable operations.
To stem the losses, management halved inventory from $21 million to $10 million and shuttered its Christchurch fulfillment center. Those reductions lowered quarterly fixed operating costs from $4.9 million to $3.4 million, pushing Mighty Ape into positive adjusted EBITDA in the fourth quarter.
Higher-margin digital services cushioned the hardware contraction. Paid subscriptions via Primate, marketplace commissions, and the Mighty Mobile telecommunications service all expanded their share of the subsidiary’s total top line.
Marketplace Shift Across Australasia
The split performance mirrors a broader transformation across Australasian e-commerce, where pure-play retailers have moved away from holding heavy direct inventory to rely on third-party marketplace commissions and automated logistics. RetailNews Asia has tracked similar inventory purges at competing digital platforms seeking to protect gross margins against stubborn freight and handling costs.
Group management confirmed it will maintain strict capital discipline across both divisions entering fiscal 2027, with full-year performance hinging on whether Mighty Ape can convert its fourth-quarter operating stability into sustained annual profit.