Moonpig has reported falling sales and profits in its first full-year results since it floated on the London Stock Exchange.

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Moonpig’s reported profit before tax jumped 21.6% to £40m

For the full year results to April 30, 2022 the pureplay gift card specialist reported a 17.3% decrease in year-on-year sales to £304.3m, while adjusted profit before tax slumped 30.9% to £51.5m. 

Adjusted EBITDA was down 18.7% year-on-year to £74.9m, with an adjusted EBITDA margin of 24.6% – down from 25% in the 2021 full year. 

The retailer’s reported profit before tax jumped 21.6% to £40m, while net debt was reduced by 27.2% to £83.8m with gross cash and cash equivalents of £101.7m.

Moonpig said that during the period it had its highest-ever gifting share of total revenue, up to 48% and had significantly expanded its range of flowers and plants.

Moonpig said it grew its app to over 43% of orders during the period and launched a personalised promotions engine to drive customer behaviours associated with higher retention and frequency. 

In its market outlook, Moonpig said it remained confident in its existing expectations for group trading for full year 2023. 

Nickyl Raithatha, CEO, commented: “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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