Technical issues from a website upgrade impacted Mighty Ape’s earnings.
Technical issues from a website upgrade impacted Mighty Ape’s earnings.
Mighty Ape’s New Zealand and Australian operation has had its half-year result hit hard by a technology upgrade to its website, but the resignation of its third chief executive since it was acquired by Kogan may be signs of a bigger concern.
Kogan, the parent company of Mighty Ape, hasrevealed its latest half-year result in the six months to December 31, 2024, with Mighty Ape NZ reporting revenue of A$73.9 million ($81.8m).
The New Zealand subsidiary earned a gross profit of A$20.3m, with adjusted earnings before interest, tax and depreciation (Ebitda) of A$1.9m over the half.
The group shared that the first-half results were “significantly impacted” by technical issues following the upgrade of Mighty Ape’s website in October 2024.
Now the issues have been resolved, it allows the brand to launch its Mighty Ape Marketplace, the enhancement of its Primate loyalty scheme, alongside other long-time growth improvements.
However, the resignation of Mighty Ape’s chief executive Daniel Balasoglou will be of immediate concern to the business.
Mighty Ape chief executive Daniel Balasoglou at the company's Silverdale HQ. Photo / Dean Purcell
The former chief financial officer turned chief executive took up the mantle in April 2024, not yet a year since he joined.
Robert McEwan, currently the general manager of operations and customer service, will take over as managing director in the coming period as part of a transition plan.
No mention was made in the group’s results as to why Balasoglou decided to resign, but questions will likely be put to the board on what comes next.
In an interview with the Herald in September 2024, Balasoglou said he was drawn to Mighty Ape because, “I’m a Kiwi boy, but lived overseas for a large period of my life. It’s a really great New Zealand brand with great purpose, so for me that aligns.”
Before joining Mighty Ape, Balasoglou served as Lotto NZ chief financial officer. He also held key leadership roles at GE Oil and Gas and Capita Symonds while working in Britain.
The Herald has approached Mighty Ape for comment on Balasoglou’s resignation.
Looking at the wider Kogan group, total revenue increased A$272.2 million in 1H25, growing by 9.9% since 1H24.
The group reported total gross sales of A$492.5m, up 10.3% compared to the previous period.
According to the group’s half-year result, the increase in growth was largely driven by Kogan.com, with all of its operating divisions contributing to top-line growth.
Kogan group reported a statutory net profit after tax of A$10.3 million in 1H25, up from A$8.7m in 1H24.
The business’ adjusted earnings before interest and tax (Ebit) was A$19m for the half, growing by 21.2% compared to the previous corresponding period.
The group board declared a fully-franked interim dividend of 7 cents per ordinary share, with the board also intending to resume the share buy-back programme.
Looking to the second half of the year, the group is anticipating continued top-line growth, largely driven by Kogan.com while Mighty Ape continues its recovery.
In an initial update of the group’s January 2025 performance, the group reported gross sales of A$80.4m, up by 24.9% year-on-year.
Kogan.com was up by 30.8% year-on-year with gross sales of A$70.8m, while Mighty Ape’s gross sales declined by 6.6%, with $9.6m.
Tom Raynel is a multimedia business journalist for the Herald, covering small business and retail.
