Moonpig shows 3.8% growth for six-month period

U.K. personalized products company Moonpig Group plc reported, for the half year ending Oct. 31, the company saw 3.8% sales growth, driven primarily by the Moonpig brand.

“We are pleased to report continued growth in revenue for the Group, driven by double-digit revenue growth at the Moonpig brand,” said Nickyl Raithatha, CEO. “Moonpig performance has been underpinned by robust growth in order volumes, powered by our multi-year investments in technology and innovation and the structural market shift to online. Raising our medium-term profit margin target demonstrates our confidence in the outlook for the business.

“We continue to innovate to attract and retain our loyal customers. To date, over 17 million innovative card creativity features have been used to customize our cards, including audio and video messages, AI-generated text suggestions, stickers, flexible photos and digital gifting solutions.

“Ahead of Christmas, we are excited to have launched ‘Your Personalised Handwriting,’ an AI-driven feature that allows customers to add their own handwriting to our cards. By creating their handwriting as a font saved to their Moonpig account, customers can type a message and see their handwriting seamlessly appear within the card. This launch is a key step in our roadmap of innovative features, leveraging emerging AI technologies to enhance the card-giving experience.”

The company reported revenue increased by 3.8% year-on-year to £158.0 million, driven by double digit growth at the Moonpig brand. The is equivalent to revenue growth of 6.1% year-on-year after adjusting for the prior year impact of temporarily higher breakage on experience vouchers sold during Covid, the company said. 

The company also reported the Greetz brand decreased its revenue decline -5.3% in H2 FY24 to -4.0% in H1 FY25. Moonpig and Greetz active customer base grew to 11.7m (October 2023: 11.3m) with frequency growing at 0.9%.

Moonpig and Greetz total orders grew by 4.7% with average order value rising by 2.5%. Revenue in the US, Australia and Ireland grew at a combined 42.5% year-on-year.

Moonpig Plus and Greetz Plus subscriptions surpassed our expectations with 750k members (October 2023: 200k).

Database of customer occasion reminders grew to 96 million (October 2023: 82 million).

Use of creative features increased by 53% year-on-year to 6.5 million in H1 FY25 (H1 FY24: 4.3m).

The company said it is using AI to personalize the customer experience by incorporating AI-generated product descriptions, improving search functionality for more relevant card and gift results. Moonpig also launched live inference technology, which analyses customer message sentiment to enhance our gift recommendations.