MyDeal.com.au triples sales as e-commerce booms

MyDeal.com.au triples sales as e-commerce booms

Online marketplace MyDeal.com.au (ASX: MYD) is riding high in its first half-yearly report since listing in October, with founder and CEO Sean Senvirtne "extremely pleased" about a 217 per cent rise in gross sales to $126.7 million in the December half.

While MyDeal's market capitalisation is worth just a sixth of its rival Kogan (ASX: KGN), the rising tide of e-commerce has lifted all boats recently and its number of active customers has also tripled over the year to hit more than 800,000.

Even quarter-on-quarter after the coronavirus-induced shift to online was in full swing, the group notched a 23.7 per cent sales rise to $70.1 million.

Founded by Senvirtne (pictured) in 2011, the company's share price has fallen off its optimistic opening level but it is still worth 38 per cent more than the $1 per share prospectus price for the initial public listing (IPO) last year.

One of the key objectives of the IPO was to raise the necessary funds for growing an incipient private label business, which today's results revealed to have doubled quarter-on-quarter to $2.8 million in the three months to 31 December.

"Our private label product range continues to grow and is expected to more than double in H2 FY21," Senvirtne explained.

"The strength in cash receipts during the quarter reflects the continued growth of the business, driven by an increase in active customers to a record 813,764, and transactions from returning customers representing 52.7 per cent of total transactions (up from 49.7 per cent in Q1).

"Our mobile apps for iOS and Android remain on track for launch in H2 FY21, and we expect this to be a key driver of growth in the future."

MyDeal.com.au also expanded its executive leadership team in January when Lachlan Freeman started in his new role as CFO, while the group has "multiple new roles" commencing in the current quarter to support continued growth.

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