Mighty Ape, the sister site of Australia’s Kogan.com, has remained in decline in the last fiscal year, but its ongoing operational reset has shown some encouraging signs.

For the year ended June 30, Mighty Ape’s gross sales fell 14 per cent, and revenue plunged 30 per cent.

The business’s turnaround strategy continued during the year, focusing on optimising inventory, rationalising unprofitable categories, and simplifying the cost base. 

Over the period, inventory reduced from $21 million to $10 million, while operations were ceased at the Christchurch warehouse. A ‘one global team’ structure was adopted to deliver further efficiencies. 

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. Combined with the rationalisation of unprofitable categories and completion of low-margin inventory clearance, this contributed to a significant improvement in gross margin through the year.

Mighty Ape’s Australian parent company, Kogan Group, posted a 12 per cent increase in annual gross sales, while revenue rose 5 per cent. The Kogan.com business recorded a 16 per cent growth in both gross sales and revenue.

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.

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