Moonpig expects to return to pre-COVID results soon
UK-based online greeting card retailer Moonpig Group plc held its Annual General Meeting (AGM) Sept. 21 and provided an update on its performance for the current financial year. The company said overall trading performance is in line with expectations. The company said, “in the current economic environment, we have prioritized greeting card sales, which have a demonstrable track record of being resilient across the cycle, and we intend to continue this focus for the remainder of FY23. Average order values have increased year-on-year, supported in particular by cards, and margin trends remain resilient in the absence of any significant pressure from input cost inflation.”
Moonpigs expects the business to return to pre-Covid seasonality: “Taking into account consolidation of the Experiences Division from July 13, 2022, onwards, we expect between 58% and 60% of revenue to arise in the second half of the financial year. This seasonality is supported by a planned increase in the concentration of resources around our peak trading periods and by the expected impact of software engineers becoming available for the development of new revenue-generating functionality following the successful migration of Greetz onto the Moonpig technology platform in September 2022. We also expect a return to the typical seasonality of Adjusted EBITDA margin rate, which will be weighted towards the second half of the financial year driven by the inherent operating leverage in our business.”
“Moonpig Group’s trading remains resilient and we are confident that full year revenue will be approximately double the level achieved three years ago,” said Nickyl Raithatha, CEO. “The Group continues to offer a powerful and unique combination of leading market positions, strong customer retention, high profit margins and robust cash generation. Against the current macroeconomic backdrop, our continued performance reflects the strength of our data-led business model and the long-term opportunities in our markets. Following the acquisition of the Experiences Division and the successful migration of Greetz onto our central technology platform, we look to the future with confidence as we execute on our strategy to capture the secular shift in our markets from offline to online.”