// Revenue falls 17.3% year-on-year at Moonpig
// The business said it was pleased with the start to the new financial year and remains confident in its existing expectations for group trading in 2023
Moonpig has posted a significant decline in sales as shoppers returned to buying gifts and greetings cards elsewhere once bricks-and-mortar shops reopened once more over the past year following easing of Covid-19 restrictions.
In full year results to 30 April 2022, the online retailer admitted its group revenue had tumbled 17.3% year-on-year, reaching just £304.3m compared £368.2m in 2021.
The business highlighted the comparative period of “severe lockdown restrictions” last year and said that revenue was 75.8% higher on a two-year comparative basis.
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Adjusted EBITDA slipped by around 19% over the past year, at £74.9m compared to £92.1m the year prior, while adjusted profit before tax dropped around 30% to £51.5m from £74.6m.
The company said it was confident the greetings card business will be resilient despite surging inflationary pressures while reiterating its financial guidance.
Looking forward, Moonpig said it would continue to target mid-teens percentage growth, as margin trends remain “resilient” alongside the group’s proposed acquisition of Buyagift.
The company, which floated onto the London Stock Exchange last year in a £1.2bn valuation, said cards had “historically demonstrated very high resilience to economic recession.”
Moonpig chief executive Nickyl Raithatha said: “Our first full year as a listed company has been another transformational period for Moonpig Group – financially, operationally and strategically. 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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