Moonpig Group reports 5% growth for FY23

GaryPageau

 

U.K. greeting card company Moonpig Group plc reported revenue growth of 5.2% year-on-year to £320.1 million.Adjusted EBITDA growth to £84.2 million, compared to £74.9 million last year with adjusted EBITDA margin increased to 26.3%.

The company said the year had many milestones:

  • Moonpig grew its technology team to 250 from 195 roles and transitioned from re-platforming to a focus on initiatives that are delivering new features for our customers.
  • Opened new operational facilities in Almere, Netherlands, and Tamworth, UK.
  • Continued customer acquisition across our brands, with revenue from new customers at Moonpig and Greetz of £31.7m,remaining ahead of pre-pandemic levels (FY19: £23.9m).

Also in the year, the company launched:

  • Moonpig Plus, an affordable subscription service.
  • Innovation to differentiate and elevate Moonpig cards:
    • Video messages rolled out across the card range, with over 75,000 messages sent by Father’s Day 2023.
    • Ability to use digital codes for gift experiences in Moonpig cards.
    • Ability to add stickers and photos to the inside of Moonpig and Greetz cards.
    • New functionality for Moonpig group cards, providing opportunity to convert message contributors into futurecustomers.
  • Recommended gift bundles and gift cross-sell at the basket stage of the customer journey at Moonpig.
  • Developed new iOS and Android apps for Greetz.
  • New recommendation algorithms tailored to Dutch customer preferences to drive gift attachment at Greetz.
Nickyl Raithatha, CEO Moonpig and Greetz

“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,” said Nickyl Raithatha, CEO, Moonpig. “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. As the clear online leader in greetings cards, Moonpig Group is well positioned to benefit from the long-term structural market shift to online.”