Moonpig reports flat growth but anticipates a big year
U.K. personalized card company Moonpig Group said revenue was flat year-on-year reflecting annualization against the prior year’s sales impact from lockdown restrictions, offset in part by first-time consolidation of £11.7 million revenue from its Experiences brands (Red Letter Days and Buyagift). The company lauded its revenue growth of 115.4% on a three-year basis against pre-Covid comparatives for H1 FY20.
The company anticipates organic growth, driven by opportunities related to low online penetration for greeting cards, estimated at approximately 16% in the UK and 20% in the Netherlands for 2022, and a significant opportunity to drive card-attached gifting, with fewer than one in five of orders across Moonpig and Greetz currently containing a gift.
The company is continuing to innovate, including testing the Moonpig Plus subscription service ahead of launch, the roll-out of video greeting cards across the Moonpig card design range, and ongoing work to build digital gift experiences capability.
“As the clear online leader in greetings cards, Moonpig Group is positioned to benefit as the market continues the long-term structural shift to online,” said Nickyl Raithatha, CEO, Moonpig. “Our resilient business model offers a powerful and unique combination of leading market positions, strong customer retention, high profitability and robust cash generation, giving us flexibility to manage through the economic cycle. As a result, our expectations for profit for the current financial year remain unchanged.
“We remain focused on delivering against our strategy, with the successful migration of Greetz onto our central technology platform and innovations such as the launch of video greeting cards and ongoing testing of our Moonpig Plus subscription service. Despite the difficult trading environment, we have delivered a robust set of results and with our data-led model we are ideally positioned to capture the significant long-term opportunities in our markets.“
|
Six months ended 31 October 2022 |
Six months ended 31 October 2021 |
Six months ended 31 October 20193 |
H1 FY23 |
H1 FY23 |
|
|
Group revenue (£m) |
142.8 |
142.6 |
66.3 |
0.1% |
115.4% |
|
Gross profit (£m) |
77.2 |
69.9 |
35.2 |
10.5% |
119.3% |
|
Gross margin (%) |
54.1% |
49.0% |
53.1% |
5.1%pts |
1.0%pts |
|
Adjusted EBITDA (£m)1 |
34.6 |
35.0 |
15.0 |
(1.2%) |
129.6% |
|
Adjusted EBITDA margin (%)1 |
24.2% |
24.5% |
22.7% |
(0.3%pts) |
1.5%pts |
|
Reported profit before taxation (£m) |
9.1 |
18.7 |
9.4 |
(51.3%) |
(3.2%) |
|
Adjusted profit before taxation (£m) |
18.9 |
24.1 |
9.8 |
(21.6%) |
92.9% |
|
Basic earnings per share (pence) |
1.7 |
4.5 |
n/a |
(62.2%) |
n/a |