Moonpig sales fall short of expectations

Moonpig has recorded a significant fall in sales as consumers switched back to shopping for greetings cards and gifts on the high street.

In full year results to 30 April 2022, ecommerce platform admitted its group revenue had fallen 17.3% year-on-year, reaching just £304.3 million compared £368.2 million in 2021.

Severe lockdown restrictions were cited as reasons for the fall.

Adjusted EBITDA tumbled by approximately 19% over the past year, at £74.9 million compared to £92.1 million the year prior, while adjusted profit before tax dropped around 30% to £51.5 million from £74.6 million.

The business cooled fears by saying it was confident the greetings card business will be resilient despite the surging inflationary pressures.

Moonpig said it would continue to target mid-teens percentage growth as margin trends remain “resilient” amid the company’s acquisition of Buyagift.

The greetings card etailer floated on the London Stock Exchange at a £1.2 billion valuation last year.

“Our first full year as a listed company has been another transformational period for Moonpig Group – financially, operationally and strategically,” Moonpig chief executive Nickyl Raithatha said.”

We have significantly outperformed the targets set out at IPO, and recently announced the proposed acquisition of Buyagift, which will accelerate our journey to becoming the ultimate gifting companion.

“Moonpig Group has delivered an enduring uplift in revenue over the past two years, with a step-change in the size of our customer base, and with each of our customers purchasing more often than before.

“We have further extended our market leadership in online cards, demonstrating the strength of our data-led business model and validating our significant investments in technology.

“Our gifting business has grown by over 100% in the past two years, and we are able to adapt with speed and agility to any changing consumer behaviours.

“We remain confident in the outlook for the current year, with our loyal customers continuing to rely on Moonpig to connect with loved ones at moments that matter. The long-term opportunity remains vast and we have never been in a better position to capture it.”

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