Moonpig trading boosted by “resilient” business model
Moonpig has hailed its resilient business model after posting revenue growth of 5.2% to £320.1 million in the year to 30 April.
Despite the economic downturn affecting the business from October 2022, the greeting card and gift retailer increased its adjusted EBITDA to £84.2 million from £74.9 million in the prior year.
Meanwhile adjusted pre-tax profit fell to £48 million from a previous £51.5 million after Moonpig was impacted by higher interest rates and invested more in technology.
During the year, Moonpig increased its technology team from 195 to 250 roles as it focused on delivering digital innovation to drive growth. It also launched new operational facilities in Almere in the Netherlands and Tamworth in the UK.
Nickyl Raithatha, Moonpig chief executive, said: “Today’s results demonstrate the resilience of our business model which is rooted in the stability of the greeting cards market and our unique use of data to drive customer loyalty. We have high profitability, strong cash generation and inherent flexibility that allows us to respond rapidly to a dynamic macroeconomic environment.
“We are innovating to differentiate and elevate Moonpig cards with embedded video messages, personalised content and the ability to include a gift experience within the card. We have continued to extend our market leadership in online cards and we expect to return to growth during the year ahead, underpinned by our continued investments in our technology, marketing and operational capabilities.”
While trading in the new financial year has been in line with expectations, Moonpig said revenue will grow at a low single digit percentage rate in the first half of the period, “in the context of the current macroeconomic environment”.
Raithatha added: “As the clear online leader in greetings cards, Moonpig Group is well positioned to benefit from the long-term structural market shift to online.”
