Moonpig Group, the leading online greeting card and gifting platform in the UK and the Netherlands, has reported the strongest ever trading week in the Group’s history ahead of Valentine’s Day.
Purchase frequency remains unusually elevated due to Covid-19 related restrictions, said Moonpig; adding it is seeing a temporary increase in average order values, as more customers attach gifts to their orders.
In line with its strategy in the first half of the year, Moonpig has further increased marketing activity to accelerate customer acquisition. As a result, it said it expected revenue for the financial year ending 30 April 2021 to be approximately double the £173 million revenue for the previous year.
Moonpig said it has continued to invest to deliver these higher levels of customer orders. On top of higher marketing spend, the company has incurred incremental costs and capital expenditure due to higher temporary staffing levels throughout the supply chain, and also by the partial shifting of its production mix to the UK following the Guernsey lockdown. Moonpig said it now expects underlying EBITDA margin for FY21 to be in line with its underlying EBITDA margin for FY20.
“The higher levels of customer purchase frequency and elevated gift attach rates are both expected to moderate as lockdown restrictions ease,” it said. “Our guidance for the financial year ending 30 April 2022 is broadly unchanged.”