Why the MyDeal (ASX:MYD) share price is jumping 20% today

This ecommerce company has been growing strongly in FY 2021…
The post Why the MyDeal (ASX:MYD) share price is jumping 20% today appeared first on The Motley Fool Australia. –

The Mydeal.ComAu (ASX: MYD) share price is on the move on Wednesday morning.

At the time of writing, the ecommerce company’s shares are up 20% to 77 cents.

Why is the MyDeal share price charging higher?

Investors have been bidding the MyDeal share price higher today following the release of an update on its performance in FY 2021.

According to the release, the company achieved gross sales of $218.1 million for the 12 months ended 30 June. This represents a 111.1% increase over the prior corresponding period. Management advised that this was driven by an 83.1% increase in customer numbers to 894,225 and significant momentum in private label sales. The latter contributed $8.8 million to gross sales in FY 2021 following a soft launch late in FY 2020.

MyDeal’s CEO, Sean Senvirtne, notes that MyDeal is growing at above industry rates. He believes this is being driven by the company continually building on its value proposition of providing superior value to customers and marketplace sellers.

He added: “We have placed ourselves in an enviable position to harness the increased demand and ongoing transition to e-commerce, with active customers now exceeding 894,000. Growing the active customer base signifies the trust consumers have placed in our products, brands and shopping experience.”

Mr Senvirtne also revealed that the launch of its mobile app has been a success and expects it to support its future growth.

He said: “Since the launch of the MyDeal app in May, it has been extremely well received, being highly rated and highly utilised. We already see a higher customer conversion rate coming through, which makes me very excited about the future of this platform and its contribution to our growth.”

“Our Private Label business has delivered a strong Gross Sales contribution and continues to grow. We remain focussed on building and augmenting our proprietary technology platform which is proving to be a core scalable asset of the business, and have invested in securing high calibre talent across all teams. The future of MyDeal is brighter than ever,” he concluded.

The post Why the MyDeal (ASX:MYD) share price is jumping 20% today appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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