Moonpig's FY performance highlights a significant turnaround for the FTSE 250 group, driven by strategic investments in technology and a concerted effort to upsell higher-value gifts. Notably, revenue surged by 6.5% year-on-year to £373m, exceeding market expectations with a compound annual growth rate of 15.3% over the past three years.
The company's pre-tax profit saw a substantial recovery from £3m in the previous financial year to £68.9m, while adjusted profits before tax increased by 13.4% to £76.5m, excluding a one-off impairment charge of £56.7m related to its experiences business.
Moonpig's average order value rose 5.7% to £36.44, driven by the introduction of premium gift options and the reintroduction of tracked postal services. Card revenue saw a notable increase of 9.4% year-on-year, despite the standard UK card price remaining at £3.99.
The company's commitment to data analytics and technology has proven crucial in driving growth, with its customer occasion reminder database reaching 113m – an 11.2% year-over-year increase that contributed to a 40% rise in orders within a week of receiving a reminder. Membership numbers for Moonpig Plus and Greetz Plus jumped by 29.3% to 1.2m, accounting for approximately one quarter of all orders.
Moonpig's board has recommended a 25% increase to its total dividend, bringing it to 3.75p per share, with the company also announcing a £65m share buyback programme in the 2027 financial year. Following these announcements, Moonpig shares rose 4.3% to 225.2p in early trading.
Looking ahead, Moonpig plans to continue investing in its technological capabilities, including AI-powered content creation and infrastructure enhancements. However, revenue progression in the experiences arm may be moderated by lower commission rates as the business evolves.
In a move that should be welcomed by investors, Moonpig's focus on delivering value-driven growth has clearly yielded results, with the company poised to maintain its momentum in the coming financial year.