AGM trading update
20 September 2022
Moonpig Group plc
AGM Trading Update
Moonpig Group plc (the "Group"), the leading online greeting card and gifting platform in the UK and the Netherlands, is holding its Annual General Meeting today. In advance of this, the Group provides an update on its performance for the current financial year (commencing 1 May 2022) to date.
Overall trading performance is in line with our expectations and hence we reiterate existing guidance for the full financial year. In the current economic environment, we have prioritised greeting card sales, which have a demonstrable track record of being resilient across the cycle, and we intend to continue this focus for the remainder of FY23. Average order values have increased year-on-year, supported in particular by cards, and margin trends remain resilient in the absence of any significant pressure from input cost inflation.
As previously indicated, we expect the business to return to pre-Covid seasonality. Taking into account consolidation of the Experiences Division from 13 July 2022 onwards, we expect between 58% and 60% of revenue to arise in the second half of the financial year. This seasonality is supported by a planned increase in the concentration of resources around our peak trading periods and by the expected impact of software engineers becoming available for the development of new revenue-generating functionality following the successful migration of Greetz onto the Moonpig technology platform in September 2022. We also expect a return to the typical seasonality of Adjusted EBITDA margin rate, which will be weighted towards the second half of the financial year driven by the inherent operating leverage in our business.
Nickyl Raithatha, CEO, commented:
"Moonpig Group's trading remains resilient and we are confident that full year revenue will be approximately double the level achieved three years ago. The Group continues to offer a powerful and unique combination of leading market positions, strong customer retention, high profit margins and robust cash generation. Against the current macroeconomic backdrop, our continued performance reflects the strength of our data-led business model and the long term opportunities in our markets. Following the acquisition of the Experiences Division and the successful migration of Greetz onto our central technology platform, we look to the future with confidence as we execute on our strategy to capture the secular shift in our markets from offline to online."
Brunswick Group +44 20 7404 5959
Sarah West / Fiona Micallef-Eynaud [email protected]
Nickyl Raithatha, Chief Executive Officer [email protected]
Andy MacKinnon, Chief Financial Officer
Moonpig Group plc (the "Group") is a leading online greeting card and gifting platform, comprising the Moonpig, Buyagift and Red Letter Days brands in the UK and the Greetz brand in the Netherlands. The Group is the online market leader in cards in both of its markets and is also the UK market leader in gift experiences.
The Group's leading customer proposition includes an extensive range of cards, a curated range of gifts, personalisation features and next day delivery offering.
The Group offers its products through its proprietary technology platforms and apps, which utilise unique data science capabilities designed by the Group to optimise and personalise the customer experience and provide scalability. Learn more at https://www.moonpig.group/.
Forward Looking Statements
This announcement contains certain forward-looking statements with respect to the financial condition, results or operation and businesses of Moonpig Group plc. Such statements and forecasts by their nature involve risks and uncertainty because they relate to future events and circumstances. There are a number of other factors that may cause actual results, performance or achievements, or industry results, to be materially different from those projected in the forward-looking statements.
These factors include general economic and business conditions; changes in technology; timing or delay in signing, commencement, implementation and performance of programmes, or the delivery of products or services under them; industry; relationships with customers; competition; and ability to attract personnel. You are cautioned not to rely on these forward-looking statements, which speak only as of the date of this announcement. We undertake no obligation to update or revise any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances.