2 ASX-listed e-commerce shares for investors in September

Highlights

  • It is now well known that COVID-19 has given a boost to e-commerce or online shopping.
  • With people forced to stay indoors due to the coronavirus-induced restrictions, the shift towards online shopping was significant.
  • Several consumer goods companies have implemented new technology and transformed labour arrangements to keep up with this e-commerce boom.

It is now well known that COVID-19 has given a boost to e-commerce or online shopping. With people forced to stay indoors due to the coronavirus-induced restrictions, the shift towards online shopping has been significant. Several consumer goods companies have implemented new technology and transformed labour arrangements to keep up with this e-commerce boom.

Several research reports have suggested that the online shopping industry would continue to grow in the current year too as many bricks-and-mortar firms are also establishing e-commerce businesses to keep their sales moving up during the ongoing coronavirus pandemic.

Source: © Boarding1now | Megapixl.com

Here are two ASX-listed e-commerce shares with strong FY21 earnings growth:

Temple & Webster Group Ltd (ASX:TPW)

Temple & Webster is primarily into sales and distribution of third-party manufactured furniture and homewares. The shares of Temple & Webster have given a return of over 40% in the past year.

The company aims to be the largest retailer for furniture and homewares in Australia and therefore, investing heavily in its offline and online businesses.

FY21 turned out to be a record year for the online retailer in terms of revenue, profit, and customers. According to the full-year results for the 12 months ended 30 June, the company’s revenue rose by a record 85% on-year to AU$326.3 million. EBITDA surged by 141% to AU$20.5 million. Active customers increased 62% on-year to 778,000. The company reported a record 165% jump in net profit after tax (NPAT) to AU$14 million.

The company has so far performed on a strong note in the new financial year as well.  The on-year revenue growth between 1 July and 27 August 2021 was 49%.

The board expects the business to benefit from ongoing online shopping adoption, an acceleration in trends from COVID-19, a rise in discretionary income, and strong housing market growth.

Source: © Kgtoh | Megapixl.com

Kogan.com Ltd (ASX:KGN)               

The business segments of online retail company include retail, mobile, marketplace, broad band. The company also offers other services such as insurance, superannuation, energy, mobile plans, and home internet. The shares of Kogan have given a negative return of over 44% in the past year.

Kogan.com and Mighty Ape are business divisions of Kogan in Australia and New Zealand, respectively. The company’s FY21 gross profit surged 61% to AU$203.7 million. However, the net profit declined 86.8% on account of one-off inventory, logistics and Mighty Ape acquisition costs.

Despite the challenges, the company has started to return to growth. The company reported a robust gross sale 24.5% above July and gross profit 25% above July in the first 18 days of August 2021.

In FY22, the company expects to post strong growth in Kogan First memberships, ongoing growth in exclusive brands, further enhancement, and development of Kogan marketplace. It may also seek good returns from the complete integration of the Mighty Ape business.

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