Moonpig backs FY guidance, says trading in line

18th Sep 2024 08:23

(Sharecast News) - Online greeting card and gift retailer Moonpig backed its full-year guidance on Wednesday as it said trading has been in line with expectations.

In an update ahead of its annual meeting, the company said growth has been underpinned by consistent strong sales and orders performance at Moonpig and is supported by steady progression at Greetz towards positive sales growth.

It said trading remains challenging in the Experiences segment, citing ongoing macro headwinds in gifting.

The Moonpig Plus membership subscriber base continues to grow, it said, with "encouraging" renewal rates following the launch anniversary. Website conversion rates and new customer acquisition have both improved, and the active customer base is now in consistent month-on-month growth.

The company still expects FY25 revenue growth at a mid-to-high single digit percentage rate, underpinned by growth in orders at the Moonpig brand.

Moonpig's medium-term targets remain unchanged. It continues to target double digit percentage annual revenue growth, an adjusted EBITDA margin rate of about 25% to 26% and growth in adjusted earnings per share at a mid-teens percentage rate.

Chief executive Nickyl Raithatha said: "Our ongoing investment in technology innovation and AI means that Moonpig Group is now consistently delivering year-on-year growth in revenue, profit and cash flow, driving sustained positive momentum in our trading performance.

"We are committed to innovation to attract and retain loyal customers and remain well positioned to benefit from the long-term structural market shift to online."