MyDeal Resists ‘Challenging Retail Environment’ in Q4 FY22 Update

MyDeal has beat its yearly guidance, reporting gross sales $272.2 million – up 24.8 percent on PCP. Moreover, its revenue is also ahead of its guidance, at $65.4 million (increasing 70.9 percent on PCP).

For this quarter, the retailer reported revenue of $16.5 million, up 89 percent on the previous corresponding period (PCP). Moreover, its gross sales are up 27 percent on PCP ($59.2 million).

“MyDeal delivered another strong quarter to achieve FY22 Gross Sales of $272.2 million, which was ahead of guidance despite a more challenging retail environment,” said Sean Senvirtne, CEO and founder of MyDeal. “Our growth for the quarter of 27 percent was driven by a combination of the key initiatives we have invested in over the past 12 months, including in-stock, brand refresh, personalisation and the continuing adoption of the MyDeal app.”

MyDeal’s Active Customers are up 17.6 percent, reaching 1,051,701 at the end of June 2022. More than half of its revenue (64.6 percent) comes from repeat transactions. This is up from 59.4 percent in 2021.

MyDeal has reported ongoing strength in its share prices in the last two months, following the majority acquisition of the company by Woolworths Group. In late May 2022, Woolworths acquired the majority of the online marketplace, giving it a valuation of $243 million.

Following the announcements, its shares skyrocketed from $0.63 a share to $1.00, a figure that has remained consistent since. This has been a key role in the business’ successful quarter, Senvirtne explained.

“The key event for the quarter was MyDeal entering a binding Scheme Implementation Agreement with Woolworths Group, under which it is proposed that Woolworths will acquire a controlling interest in MyDeal for an all-cash consideration of $1.05 per share,” he said.

“The MyDeal Board has unanimously recommended that MyDeal shareholders vote in favour of the Transaction in the absence of a superior proposal and subject to the independent expert concluding that the Scheme is in the best interests of MyDeal shareholders.”

Additionally, its in-stock gross sales were up 296.8 percent ($35 million) for FY22. For the latest quarter, these were $10.1 million, up 343.2 percent on PCP. Customer receipts were $6.24 million for the quarter, up 25.9 percent on PCP. The business has a cash balance of $32.4 million, as of 30 June 2022.

Its shares are up 0.49 percent upon the financial update, at $1.03 per share.

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