Moonpig revenue dips in H1

Moonpig has revealed that year-on year revenue fell by 8.5% to £142.6m in the half-year ended 31 October, despite reporting a revenue growth of 115% on a two-year basis.

The group also saw EBITDA decline by 15.1% over the period while pre-tax profit plunged by 43% to £18.7m, as the group reportedly struggled to compete with bricks-and-mortar businesses on the high street post-lockdown.

Nonetheless, the retailer said the two-year increase in revenue reflected a “significant” customer base growth, higher customer purchase frequency and growth in attached gifting.

Moonpig said it also benefited from a “very high retention of customers acquired during Covid-19”, with 89% of year-to-date revenue derived from existing customers.

During the period, the company expanded its gifting range and launched a branded “shop-in-shop” partnership with Virgin Wines. It also introduced fragrances and expanded its toy offering.

The retailer said that while customer purchase frequency had not yet “fully normalised”, it expects to exit the financial year with an “enduring uplift in UK customer purchase frequency of approximately 15% compared to pre-Covid-19 levels”.

The group also said it continues to target an annual revenue group in the “mid-teens”, and an adjusted EBITDA margin rate of 24-25%.

Nickyl Raithatha, Moonpig chief executive, said: “With revenue more than doubling over the past two years, we are confident that we have achieved an enduring transformation in the scale of our business. The long-term opportunity remains vast, and we have never been in a better position to capture this growth.”