The company recorded AU$14.5 million in revenue, AU$1.42 million in net losses, AU$7.92 million in debt, and less than AU$85,000 in cash during the 2024 financial year. For now, it will stay reliant on financial support from its US-based parent company.
Prime Distributor Reports Millions in Debt
The company behind Logan Paul's Australian beverage business has entered voluntary administration after a sharp decline in sales and mounting financial losses.
Congo Brands Australia, the local company behind Logan Paul and KSI's Prime sports drinks, as well as the Lunchly brand co-founded with MrBeast, has appointed Alice Fay Ruhe of The Ruhe Group as administrator. The first meeting of creditors is scheduled for next Friday.
Prime launched in 2022 and quickly became a viral success, particularly among Australian schoolchildren. This was driven by the popularity of Logan Paul and KSI. However, the company's financial performance deteriorated quite a bit over the past year.
According to its latest financial report lodged with the Australian Securities and Investments Commission, Congo Brands Australia's sales fell to AU$14.5 million in the 2024 financial year, down from AU$31 million the previous year. The company also recorded a net loss of AU$1.42 million, while carrying AU$7.92 million in debts and holding just AU$84,855 in cash.
The report also showed the company greatly reduced its inventory, with stock holdings dropping from AU$28.9 million to AU$1.7 million after recording a AU$4.57 million inventory write-down.
Despite the financial challenges, the filing states that Congo Brands Australia is still reliant on financial support from its Kentucky-based parent company. The global holding company has reportedly committed to supporting the Australian business for the foreseeable future while the administration process gets underway.
