Moonpig goes back to basics and prioritises greetings card business

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Offering has a ‘demonstrated track record of being resilient’ in tough economic times

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oonpig has “prioritized” its greeting card offerings in a strategy to fall back on a part of the business with a “demonstrated track record of being resilient” during difficult economic times.

In an update ahead of its annual general meeting today (Tuesday), the online greeting card and gift platform founded by former ‘Dragons’ Den’ entrepreneur Nick Jenkins said its business performance was in line with expectations and it is reiterating existing guidance for the full was. financial year.

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The retailer said: “In the current economic environment, we have prioritized sales of greeting cards, which have a demonstrated track record of being resilient throughout the cycle, and we intend to continue this focus for the remainder of the full year 2023.” Huh.”

Moonpig said it also expects its business to return to “pre-Covid seasonality”.

Moonpig boss Nikil Ryttha said: “The Moonpig Group business remains resilient and we are confident that full-year revenue will be nearly double the level achieved three years ago. The group is based on leading market conditions, strong customer retention, high profit margins. and continues to deliver a powerful and unique combination of strong cash generation.

“Against the current macroeconomic backdrop, our continued performance reflects the strength of our data-based business model and the long-term opportunities in our markets.”

The business, which has faced increased competition from bricks-and-mortar retailers as customers return to stores following the easing of the COVID pandemic, bought Smartbox Group which in May this year for £124 million from the Red Letter Days and BuyGift brands. Trades under and Greetz, a Dutch online card and gift-giving retailer in 2018,

Reported in June of this year, The company’s annual results on 30 April showed a 17.3% drop in annual revenue from £368.2 million to £304.3 million, while adjusted profit before tax fell from £74.6 million to £51.5 million, a decline of almost 30%.

Credit: www.standard.co.uk /

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