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MyDeal’s Shares Slip Despite FY21 Revenue Growth
Online retailer, MyDeal, has announced its strongest FY in its ten-year history, with uplifts in revenue, gross sales, and active customers.
The Australian online marketplace announced to the ASX this morning of a 111 percent increase in its Gross Sales, reaching $218.1 million, up from $103.3 million in FY20. Further, its revenue rose to $38.3 million, an increase of 150 percent (compared to $15.3 million in FY20). The retailer’s profits have surged 119 percent to $33.3 million, up from the $15.3 million it recorded in FY20.
“After generating $218 million in Gross Sales, FY21 represents a significant moment in MyDeal’s history, a record 10 years in the making and just the beginning of what’s to come,” shared Sean Senvirtne, the CEO and Founder of MyDeal. “As we cement ourselves as one of Australia’s most successful online retailers, I couldn’t be prouder of what the team has achieved. We have put ourselves in the perfect position to capture the increased demand in the market.”
Earlier in the month, MyDeal announced its refreshed brand image, featuring a smiley face over the ‘Y’ in the logo. The updated ‘bold and energetic’ typography aims to inspire Aussie shoppers to ‘shop happy’, shifting its focus of making the online shopping process uncomplicated and easy for consumers. The company noted that the launch of the updated brand image has not impacted these figures.
In its FY results, MyDeal is reporting an 83 percent YoY increase in its Active Customers, now at 894,225 as of June 30 2021. Shoppers have continued to return to the MyDeal platform in Q4, reporting a 59.4 percent in repeat purchases “Underpinned by our ability to offer consumers great value across millions of home and lifestyle products, we have been able to execute our strong flywheel strategy to capture close to 900,000 active customers,” explained Senvirtne.
Its App experienced a slight slip in the percentage of sales over a nine-week period but remains strong in overall growth. Senvirtne explained that the app has had more than 70,000 downloads and currently represents ten percent of total MyDeal sales. “Promoting and further optimising the app will remain a key feature of our strategy going forward,” he said.
“As more and more Australians make online shopping part of their every day, we constantly work to improve and refine the MyDeal customer value proposition and continue to grow our loyal customer base,” Senvirtne shared.
The retailer’s cash balance remains ‘strong’ at $42.7 million with no debt, with its strategy to drive top-line growth mainly focusing on a combination of customer acquisition and retention. Its net cash flow for FY21 from operations was $3.9 million, and before its $4.9 million investment in its private-label stock, operating cash flow was positive ($1 million), reflecting the negative working capital marketplace model.
According to MyDeal, its customers shop 1.7 times a year on the platform, which has increased slightly from 1.5 times in FY20. For FY22, the brand will continue to work with its refreshed brand strategy and will include some above the line brand investments.
At the time of writing, MyDeal’s share prices have tumbled 8.93 percent to $0.76 a share, up from $0.84 a share this morning.