White label on-line retailer Kogan.com improved income and earnings with double-digit progress within the first half of the 2026 monetary 12 months (H1FY26), however its 2020 acquisition of Kiwi retailer Mighty Ape for $122 million continues to weigh closely on the enterprise.
Kogan Group (ASX: KGN) noticed gross sales enhance 16% on 12 months in the past, to A$572.4 million, with income up 5% to $287.6m and gross revenue rising 8% to $114.2 +8% within the six months to December 31. Kogan.com was the star performer with gross sales up 21% and income rising 17%.
However Mighty Ape headed in the other way, with gross sales falling 9% to $70.8m, income plummeting 25% to $55.2m, and gross revenue down 29%. That led to a internet revenue after tax (NPAT) lack of $3.8 million for Mighty Ape, wiping out practically a 3rd of Kogan.com’s $12m revenue, for a gaggle NPAT of $8.2m, down 20%.
It’s nonetheless an enchancment for the group after following a $46.3 million on-cash impairment to goodwill in Mighty Ape six months in the past, and a subsequent $38.5m loss for the group in its H2FY25 results final August.
Kogan.com’s lively clients grew 28%, year-on-year, to 3 million, whereas Mighty Ape’s buyer base grew 5% to 700,000.
The outcome nonetheless was under market expectations.
The group’s manufacturers additionally embody furnishings startup Brosa, electronics retailer Dick Smith and designer reproduction vendor Matt Blanc – all companies bought from the administrator following their monetary failure.
Kogan Group cofounder and CEO Ruslan Kogan stated in an briefing following the outcomes that “Kogan.com is firing on all cylinders”, declaring that profitability grew alongside gross sales.
His cofounder and the corporate’s chief monetary officer David Shafer stated that aspect of the enterprise “is doing the heavy lifting”, however stated it was “onerous to inform” the place the platform’s buyer progress got here from as a result of “”we regularly have our blinkers on and concentrate on our clients”.
Path to revenue
The CEO believes Mighty Ape is now on a path to profitability, regardless of falling gross sales, having slashed its stock by practically a 3rd in six months, down from $20.8 million at 30 June 2025 to $14.2 million at December 31, in a echo of the excess stock problems that plagued Kogan.com within the wake of the pandemic.
“It’s a enterprise mannequin that has very robust metrics round it, and we’re taking that playbook and implementing it in New Zealand for Mighty Ape,” Kogan stated.
The corporate’s ASX assertion stated it “maintains a conservative outlook given ongoing New Zealand financial headwinds and persevering with inner optimisations within the Mighty Ape enterprise”.
Ruslan Kogan advised the market that cost-of-living pressures are a tailwind for the enterprise.
“The broader financial atmosphere stays difficult for a lot of households,” he stated.
“In occasions like these, clients gravitate in the direction of trusted manufacturers that constantly ship worth. The Kogan Group is nicely positioned on this regard.”
The corporate maintained its earlier steering of a optimistic efficiency in Mighty Ape in 2HFY26, and FY26 Adjusted EBITDA margins of between 6% and 9%.
The board declared a totally franked interim dividend of 8 cents a share, up from 7 cents 12 months in the past.
Kogan shares lifted round 5.8% in Monday commerce following the outcomes, to hit $3.27. However they nonetheless stay nicely under their 52-week excessive of $5.30, this time final 12 months. The corporate has spent a lot of the previous 12 months on a share buyback program.
