Moonpig profits fall to £48m despite sales growth

Moonpig has reported its pre tax profits fell 6.9% to £48.0m in the year ended 30 April, despite seeing a 5.2% increase in revenues to £320.1m.

Gross margins increased by 6.8% to 56.1%, while adjusted underlying earnings (EBITDA) jumped 12.4% to £84.2m.

According to the greetings card group, trading since the start of the year has been in line with its expectations.

Looking ahead, Moonpig said in the context of the current macroeconomic environment, it expects pro forma revenue to grow at a low single digit percentage rate in the first half of FY24, underpinned by the Moonpig brand, which has been in growth since March.

For the full financial year, it expects consolidated revenue growth at a mid to high single digit percentage rate, with all of our brands returning to growth in the second half.

It also expects adjusted EBITDA margin to “remain resilient”.

Nickyl Raithatha, CEO of Moonpig, said: “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. 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.”