Moonpig profits double to £92m due to increased online spending

ONLINE greetings card and gift retailer Moonpig has said that its adjusted pretax profit, excluding exceptional items, more than doubled to £92m from £44m a year earlier, the Guardian reported.

The company's revenue rose by 113 per cent to £368m in the year to 30 April, compared with a year earlier.

Moonpig said it dispatched more than 50m orders in the year to April. The growth in profit figures was a result of people shopping more often, as well as new customers making purchases, it added. 

The Moonpig chief executive, Nickyl Raithatha, told the Guardian that the past year was a “milestone” for the group, which aims to become “the ultimate gifting companion”.

“Our customer proposition continues to improve, with enhancements to our card and gifting ranges, and more delivery options than ever before. The long-term growth opportunity remains vast, with the majority of the card and gifting market still offline, and we have never been in a better position to capture this growth," he said.

The company experienced its strongest-ever week of sales during the run-up to Valentine’s Day.

Moonpig forecast that its sales will grow by about half in the coming year, reaching between £250m and £260m.

The firm, which also operates as Greetz in the Netherlands, said its annual profits were at the top end of its guidance from when it floated on the London Stock Exchange in February.

Moonpig placed 140m shares at an initial price of 350p at its listing, giving investors a 41 per cent stake in the company. Since then the shares have mostly traded higher, giving the company a market value of just under £1.5bn.

According to recent reports, investors reacted to Moonpig's warning that customer purchases have started to return to more normal levels, as lockdown restrictions have eased and shops have reopened in the UK and the Netherlands.

The company sells products from brands including Lego and Cath Kidston, and also sends annual reminders to customers who have previously bought birthday or anniversary cards, the newspaper report added.