Kogan-owned Mighty Ape has reported lower sales and profit for the fiscal first half as the online retailer engaged in a business reset.

For the six months ended December 31, the company’s revenue fell 25 per cent to $65.2 million, while gross sales slid 9 per cent.

Gross profit for the half decreased 29 per cent to $17 million. The company also posted adjusted EBITDA loss of $3.7 million and statutory net loss after tax of $4.5 million.

The company noted it had cleared its suboptimal inventory during the period and achieved stronger contributions from Marketplace, Mighty Mobile and Primate.

“Management focus now shifts to rebuilding inventory with new ranges, further optimisation of processes and operations, and expanding the Mighty Ape Verticals,” it said.

Australia’s Kogan Group, which acquired Mighty Ape in 2020, expects the New Zealand retailer to return to positive performance in the second half, driven by the business reset. The outlook, however, remains “conservative” given ongoing economic headwinds in the country.

In a separate announcement, Grant Henry has been appointed GM at Mighty Ape. Henry joins the team with 25 years of experience in the retail sector and will lead the local team in its next phase of growth. 

The company has also launched pet and car insurance. The insurance is provided through Cove and underwritten by Aioi Nissay Dowa Insurance Company.

According to the firm, Mighty Ape Car Insurance offers cover for accidents, theft, fire and damage, with flexible term options and savings for customers. Mighty Pet Insurance covers eligible accidents and illnesses with “fast claims and flexible options”.

• Further reading: Mighty Ape drags down Kogan’s profitability in first quarter.