A look at ecommerce shares amid worsening COVID-19 hit


  • The Australian e-commerce sector has witnessed significant change over the last year driven by COVID-19.
  • Some businesses in the digital space are observing growing demand as the customers have been shifting towards e-commerce due to the pandemic.
  • RMD and CAR delivered over 30% YTD returns, followed by UBN, WEB and ADH at 27%, 18% and 12%.

The outlook on the Australian eCommerce sector has been positive. Experts believe that the e-commerce revenue in Australia is likely to experience a compound annual growth rate (CAGR) of over 4% within FY21-FY25.

Representative Image Source: © Jirsak | Megapixl.com

With the fundamental shift in consumer behaviour, the e-commerce space is observing a growing demand, as the consumers are shifting towards online shopping due to the pandemic. Although this sector has also witnessed some headwinds but there are few e-commerce stocks that have performed well during this year. Let us have a look at e-commerce shares amid worsening pandemic.

Kalkine Research Source:ASX  1

Resmed Inc (ASX:RMD)

Resmed Inc is an ASX listed medical device manufacturer with a market worth of AU$57.65 billion.

RELATED READ - ResMed (ASX:RMD) reports strong Q4-FY21 results

Despite facing some headwinds during the last quarter, the medical device manufacturer registered a revenue increase of 14% for the fourth quarter of FY21. As per its latest quarterly report –

  • Company’s year-on-year revenue increased by 14% to AU$876.1 million, up 10% on constant currency basis.
  • The company announced a dividend of AU$0.42 per share – a jump of 8%. On the other hand, the non-GAAP profit increased by 7%.
  • Income from operations also increased by 12% for the last year.

On 9 September, Resmed shares were trading 2.880% higher at AU$40.710 at 11:54 AM AEST.

Carsales Limited (ASX:CAR)

The ASX listed Carasales Limited operates an online automotive e-commerce platform with a market worth of AU$7.30 billion.

Representattive Image Source: © Jirsak | Megapixl.com

Carsales recently announced that it has completed the acquisition of leading US digital marketplace business – Trader Interactive. The company will now hold 49% stake in Trader’s shares. According to the company’s full year results of FY21 –

  • Adjusted revenue stood at AU$438 million, up 4% from the prior year.
  • The company’s Adjusted earnings before interests, taxes, depreciation and amortisation (EBITDA) stood at AU$254 million.
  • Carsales achieved strong international result supported by increased South Korean revenue growth by 21%.

On 9 September, CAR shares were trading 3.285% lower at AU$25.030 at 1:24PM AEST.

Urbanise.com Limited (ASX:UBN)

Urbanise.com is an ASX listed Software as a Service (SaaS) business that provides cloud-based facilities and strata management platform services across Australia.

The Company achieved a 19.1% increase in its revenue for the year ended on 30 June. According to its last financial report –

  • The revenue went up by 19.1% that stood at AU$11.49 million. Despite the loss of a legacy ME customer, the Company’s FM revenue increased by 21.3%.
  • Strata revenue also saw a healthy jump by 19.4% supported by PICA project.
  • The net cash position stood at AU$7.82 million driven by sales and marketing recruitment.

On 9 September, UBN shares were trading at AU$1.390, at 11:03 AM AEST, unchanged from the previous close.

Webjet Limited (ASX:WEB)

Webjet Limited operates a digital travel business focused on both wholesale and global consumer markets through B2B and B2C.

Webjet announced a positive cash flow for 1H22 under one of its ASX release. As per the latest reports –

  • It has forecasted positive operating cash flow for the first half of FY22.
  • Despite being subsequently impacted by COVID-19’s travel restrictions, Webjet achieved a strong capital position with pro forma cash at AU$431 million.

On 9 September, Webjet shares were trading 1.739% lower at AU$5.935 at 1:21 PM AEST.

RELATED READ - ASX rises 0.3% on energy, tech boost; Nanosonics, Webjet lead

Adairs Limited (ASX:ADH)

Adairs Limited operates as one of the leading omni channel specialty retailers in Australia for home furnishing and other products.

Adairs’ response to the COVID-19 was impressive, with the Company’s group sales surging by 28.5% for FY21. According to its FY21 results published in August-

  • The Company achieved record sales driven by Omni-channel strategy. Group sales increased by 28.5% to AU$499.8 million.
  • Group online sales saw a significant rise representing 48% of sales supported by Adairs’ digital platform.
  • The underlying gross margin increased by 66.7% that stood at 520 bps.

Adairs also maintained a robust balance sheet with no bank debt at the year end. On 9 September, BTI shares were trading 0.689% higher at AU$1.460 at 10:33 AM AEST.





Top Penny Picks under 20 Cents to Fit Your Pocket! Get Exclusive Report on Penny Stocks For FREE Now.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK