Kogan Group says it remains committed to turning around its struggling New Zealand marketplace acquisition Mighty Ape, despite its ongoing drain on the parent company’s bottom line.

In a first-quarter trading update, Kogan reported an adjusted EBITDA of $10.1 million, at a 6.5 per cent margin, down from the previous quarter due to Mighty Ape’s losses. 

From July to October, Kogan said Mighty Ape’s losses were part of the recalibration of the business to achieve sustained profitability. 

Kogan has finished “right-sizing” Mighty Ape’s inventory and will now focus on integrating teams and processes into vertical structures across the group, with completion expected by the end of the first half of this fiscal year.

Meanwhile, the company’s Kogan.com business saw strong performance across divisions, posting an adjusted EBITDA of $13.3 million, at a margin of 10.6 per cent.