ASX-listed Kogan.com has written off $46.3 million in goodwill from its $122 million acquisition of Kiwi online retailer Mighty Ape nearly five years ago.
The announcement of the non-cash impairment comes ahead of next Monday’s FY25 results release. The value of goodwill associated with the acquisition was $46.3 million in June 2024.
Mighty Ape’s focus is gaming, toys and other entertainment categories. When it was acquired in December 2020, the online retailer had 690,000 unique customers. Nearly five years later it has 700,000.
“The decision to write down the goodwill reflects a recognition of the poorer-than-expected trading performance and longer than anticipated recovery from the platform technology challenges following the October 2024 website upgrade,” Kogan.com said in a statement to the ASX.
“This was compounded by the recent challenging retail environment in New Zealand marked by weak consumer confidence.”
Three months ago the company said upgrading the Mighty Ape site upgrade had an impact on sales and inventory levels.
The Kogan.com board resolved to write-down the acquisition’s goodwill, adding that other acquired intangible assets are not impacted.
“While the company continues to believe that the Mighty Ape business will return to positive trading performance in the second half of FY26, the Board considers the write down of goodwill to be a prudent measure notwithstanding their ongoing confidence in the Mighty Ape business and brand,” the statement said.
The goodwill impairment is a one-off, non-cash measure that will not impact Adjusted EBITDA.”
Kogan.com said further details associated with the impairment will be provided in the release of the FY25 financial report on August 25.
The company’s H1 results for FY25 delivered Adjusted Net Profit after Tax (NPAT) of $12.3 million, up 7.9% with Statutory NPAT rising by 19% to $10.3 million
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