New Zealand online retailer Mighty Ape recorded a decline in sales over the third quarter, which dragged down the results of its Australian parent company Kogan.

Mighty Ape recorded a 0.7 per cent increase in its gross sales to $40.6 million but revenue dropped 22 per cent to $32.3 million from $41.4 million a year ago. 

This drop in revenue caused parent company Kogan’s gross revenue to fall 0.7 per cent, offsetting 8.4 per cent growth on Kogan’s online business. 

Mighty Ape’s gross profit fell by 21.1 per cent to $9.5 million from $12 million during the same period last year. 

The company’s adjusted EBITDA fell by 182.3 per cent, from $1.5 million to a $1.3 million loss in the third quarter, its margin dropping to negative 3.9 per cent. 

This decline was part of the reason Kogan’s adjusted EBITDA declined by 37.5 per cent from $10.9 million to $6.8 million year-on-year.