Moonpig sees FY sales and profits rise amid tech investments
In the year ended 30 April 2024, revenues rose by 6.6% to £341.1m, up from £320.1m the prior year, while adjusted profit-before-tax rose from £55.4m to £58.2m
Moonpig has seen both sales and profits rise in its full-year results, which the group has attributed to “extraordinary” customer loyalty brought on by its investments in technology.In the year ended 30 April 2024, revenues rose by 6.6% to £341.1m, up from £320.1m the prior year, while adjusted profit-before-tax rose from £55.4m to £58.2m.
The group also reported adjusted EBITDA grew by 13.5% to £95.5m, up from £84.2min FY23, reflecting its revenue growth as well as an improved gross margin rate.
New customer sales returned to growth at Moonpig in the second half of the year, while 89% of Moonpig and Greetz revenues were delivered from existing customers.
According to the group, Moonpig Plus subscriptions “surpassed” its expectations with over half a million members within a year of launch.
The group attributed its results to new investments in tech, including a “significant” upgrade to its algorithms by incorporating individual customer level data into its gift recommendation engine.
It also introduced personalisation elements into areas including homepage banners and promotions unique to the individual customer, and “enhanced” the capabilities of its AI-powered Customer Service chatbot.
In addition, it launched an AI semantic search capability, using large language models to “better understand and interpret customer search terms”.
CEO Nickyl Raithatha said: “We are delighted that the group has delivered full-year growth in both revenue and profit, with trading performance strengthening across our peak trading periods in the second half of the year. This has been driven by our multi-year investments in technology and innovation, which continue to foster extraordinary customer loyalty.
“The Moonpig Plus subscription scheme has exceeded our expectations, passing the milestone of half a million members within one year. Our investments in new AI technologies are delivering an increasingly personalised experience for our customers. As the clear online leader in greetings cards, Moonpig Group is well positioned to benefit from the long-term structural market shift to online.”
