Kogan.com Ltd (ASX:KGN), a portfolio of retail and services businesses that includes Kogan Retail, Kogan Marketplace and Mighty Ape, today announced a one-off, non-cash goodwill impairment related to its Mighty Ape acquisition. Kogan.com is a leading consumer brand renowned for price leadership through digital efficiency. The decision follows the annual impairment testing of goodwill and other intangibles acquired as part of the Mighty Ape acquisition in December 2020. The board has resolved to write down the associated goodwill, while other acquired intangible assets remain unaffected.
The write-down reflects a recognition of Mighty Ape’s poorer-than-expected trading performance and a slower-than-anticipated recovery from platform technology challenges after the October 2024 website upgrade. These issues were further compounded by the challenging retail environment in New Zealand and weak consumer confidence. While the company anticipates a return to positive trading performance for Mighty Ape in the second half of FY26, the board considers the goodwill write-down a prudent measure.
The goodwill impairment is a one-off, non-cash measure and will not impact Adjusted EBITDA. As of June 30, 2024, the goodwill associated with the Mighty Ape acquisition was valued at $46.3 million. Further details regarding the impairment will be provided in the FY25 financial report, scheduled for release on August 25, 2025.
The announcement was authorised for release by the Board of Kogan.com Ltd. For further information, contact relations@kogancorporate.com.
