Moonpig experiences 'significant increase' in demand amid Covid-19 pandemic

Online greeting cards retailer Moonpig said on Thursday that the "significant increase" in demand seen in the first half of the year had continued through the third quarter.

Moonpig said that last week was "the strongest ever trading week" in its history, thanks to Valentine's Day, with purchase frequency remaining "unusually elevated" due to Covid-19 related restrictions and average order values seeing a temporary increase, as more customers attach gifts to their orders.

The London-listed firm highlighted that it now expects revenue for the financial year ending 30 April to be approximately double the £173.0m recorded in the prior year.

"We have continued to invest to deliver these higher levels of customer orders," said Moonpig, which noted it had further increased marketing activity to accelerate customer acquisition.

"On top of higher marketing spend, we have incurred incremental costs and capital expenditure due to higher temporary staffing levels throughout our supply chain, and also by the partial shifting of our production mix to the UK following the Guernsey lockdown."

Moonpig now expects underlying earnings margins for the 2021 trading year to be in line with prior year comparatives, while guidance for 2022 was "broadly unchanged".

As of 0840 GMT, Moonpig shares were up 1.78% at 442.12p.