// Moonpig cuts annual sales forecast after trading environment “becomes progressively more challenging”
// It expects full-year sales to come in at approximately £320m, compared to the previously guided £350m
Moonpig has lowered its full-year sales forecasts after “challenging” trading conditions affected the online retailer.
The business said the trading environment has “become progressively more challenging” during October and November as orders were hit by postal strikes at Royal Mail.
It expects full-year sales to come in at approximately £320 million, compared to the previously guided £350 million.
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Moonpig’s sales grew 115.4% on a three-year basis against pre-Covid comparatives for H1 FY20.
Adjusted EBITDA more than doubled on a three-year basis and was flat year-on-year at £34.6 million, with an adjusted profit before tax of £18.9 million.
Moonpig said it remains confident in the “structural growth opportunity in markets, as well as the fundamental strength, resilience and agility of the business”.
“As the clear online leader in greetings cards, Moonpig is positioned to benefit as the market continues the long-term structural shift to online,” Moonpig CEO, Nickyl Raithatha said.
“Our resilient business model offers a powerful and unique combination of leading market positions, strong customer retention, high profitability and robust cash generation, giving us flexibility to manage through the economic cycle.
“We remain focused on delivering against our strategy, with the successful migration of Greetz onto our central technology platform and innovations such as the launch of video greeting cards and ongoing testing of our Moonpig Plus subscription service.
“Despite the difficult trading environment, we have delivered a robust set of results and with our data-led model we are ideally positioned to capture the significant long term opportunities in our markets.”
