Moonpig has announced it expects revenues for the financial year ending 30 April 2021 to approximately double to £173m.
The online retailer said it saw a “significant increase” in demand during the first half of the year, which has continued through Q3 with it recording its “strongest ever” trading week ahead of Valentine’s Day.
It added that purchase frequency remained “unusually elevated” due to Covid-19 related restrictions, the company revealed it also saw a temporary increase in average order values, as more customers attach gifts to their orders.
In line with its strategy in the first half of the year the retailer said it has “further increased marketing activity” to accelerate customer acquisition.
On top of higher marketing spend, the group has incurred “incremental” costs and capital expenditure due to higher temporary staffing levels throughout its supply chain, and also by the partial shifting of its production mix to the UK following the Guernsey lockdown.
Additionally, the company expressed it expects underlying EBITDA margin for FY21 to be in line with FY20 results.
The group claims that the higher levels of customer purchase frequency and elevated gift attach rates are both expected to moderate as lockdown restrictions ease.