Online retailer Kogan is continuing to drag Mighty Ape through its lengthy turnaround, with the e-commerce site seeing a boom on its flagship platform.

The New Zealand-based sister site Mighty Ape has been recording sustained losses throughout the business’s attempt to return it to profitability. Acquired in 2020 for $122.4 million, the group’s latest financial disclosure claimed the end to be in sight.

“In line with the strategy to transition toward a more capital-light, high-margin model, non-performing product categories were removed, while newer private label ranges were introduced via Kogan.com as a seller on the Mighty Ape Marketplace platform,” Kogan said. “Combined with structural cost reductions, these improvements position Mighty Ape on a clear path back toward sustained profitable trading.”

This statement came in a 10-month earnings update to the ASX for the period ending April 30.

This update said that Mighty Ape recorded $101.7 million in sales for the period, falling 14.2 per cent from the previous year. Gross profits fell by 25.5 per cent across the same timeframe.

But the Kogan.com business is booming. An 18.2 per cent uplift in sales and a 19.5 per cent increase in gross profits have bolstered the entire group. A group that, across the period, edged closer to $1 billion in sales with a recorded $875.6 million in 10 months.

“This performance was driven by growth in active customers, increased customer engagement, and continued expansion in platform-based sales,” Kogan added. “The business also benefited from strategic marketing investment and operational cost management, contributing to strong operating leverage.”