Moonpig goes back to basics to navigate cost of living crisis

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Moonpig has said it will focus on greeting cards and has left its full year guidance unchanged as it seeks to navigate the current cost of living crisis.

Nickyl Raithatha

Nickyl Raithatha said Moonpig is confident full-year revenue will be double the level of three years ago

Ahead of Moonpig’s first annual general meeting today (September 20), the retailer has issued an update to the City on its financial performance. The retailer said current trading was in line with expectations and it would be reiterating existing guidance for the financial year.

The retailer said it had prioritised greeting card sales in the current economic climate and has a demonstrable track record of being resilient across the cycle, and it intends to continue this focus for the remainder of financial year 2023.

Moonpig said following consolidation of the experiences division on July 13, it would expect between 58% and 60% of its revenue to arise in the second half of the financial year. This, combined with the concentration of resources around peak trading periods, would lead to a return to seasonally adjusted EBITDA margin rates.

Chief executive Nickyl Raithatha said: “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 [Dutch online card retailer] Greetz on to our central technology platform, we look to the future with confidence as we execute our strategy to capture the secular shift in our markets from offline to online.”