Moonpig reports lower six-month results

 U.K. personalized product retailer Moonpig reported lower results for the half-year ending Oct. 31. The company reported revenue and Adjusted EBITDA down 8.5% and 15.1% year-on-year respectively, reflecting lapping of periods of severe Covid-19 related lockdown restrictions, the company said. Group revenue was £155.9 million, compared to £142.6 million for the same period last year.

During the period, the company delivered 19.5 million orders in the United Kingdom and the Netherlands, compared to 9.5 million for the same period last year. Nine out of 10 orders were from existing customers. The company said the group achieved a gross profit of £69.9 million (H1 FY21: £80.8 million). The gross margin rate of 49.0% was lower than in previous periods, reflecting growth in the proportion of revenue relating to gifting, together with discretionary promotional activity to drive app downloads and reminder setting and incentives to drive frequency such as offering free cards for purchase missions that are currently of low volume such as Diwali and Thank You cards, the company explained.

“Moonpig Group continues to successfully deliver against its strategy to become the ultimate gifting companion,” says Nickyl Raithatha, CEO.  “Our new technology and data platform continues to make it easier for customers to remember, find, create and send the perfect greeting card and the perfect gift to their loved ones. As a result, our half-year results demonstrated even stronger customer retention and our highest-ever proportion of revenue from gifting.

“With revenue more than doubling over the past two years, we are confident that we have achieved an enduring transformation in the scale of our business. The long-term opportunity remains vast, and we have never been in a better position to capture this growth.”

For the coming year, the company said annual revenue for FY22 is now expected to be at the upper end of the previous guidance range of between approximately £270 million and £285 million.

£m	Six months to 31 October 2021	Six months to 31 October 2020	Six months to 31 October 2019	H1 FY22 Year-on-year %	H1 FY22 Two-year growth %
Group revenue	142.6	155.9	66.3	(8.5%)	115.2%
Adjusted EBITDA1	35.0	41.2	15.0	(15.1%)	132.5%
Adjusted EBITDA margin1	24.5%	26.4%	22.7%	(1.9%pts)	1.8%pts
Reported profit before tax	18.7	33.0	9.4	(43.2%)	99.7%
Adjusted profit before tax1	24.1	34.8	9.8	(30.6%)	147.0%
Basic earnings per share (pence)2	4.5p	N/A	N/A	N/A	N/A
Net debt	(113.0)	(30.9)	(33.9)	(265.4%)	(233.0%)

1 Before adjusting items of £5.4m in H1 FY22 and £1.8m in H1 FY21.

2 Earnings per share not disclosed for periods arising prior to the Group’s formation as a result of the pre-IPO restructuring in February 2021.

3 Two-year growth included contextualizing the short-term effect of Covid-19 upon trading.