Image source: Company update

Highlights

  • Revenue Forecast: Moonpig expects full-year revenue between £350 million and £353 million.

  • Profitability: Adjusted EBITDA margin is set to reach the upper end of the 25%-27% range, with double-digit growth in Adjusted EPS.

  • Strategic Expansion: The company is enhancing gift offerings, expanding its subscription service, and launching a new £60 million share buyback in FY26.

Moonpig Group plc (LSE:MOON), the UK and Netherlands' leading online greeting card and gifting platform, has provided an upbeat trading update for its financial year ending 30 April 2025. The company expects revenue to be in the range of £350 million to £353 million, supported by sales at its flagship Moonpig brand. Additionally, the Group anticipates an Adjusted EBITDA margin at the top end of its 25%-27% guidance range, alongside double-digit percentage growth in Adjusted Earnings Per Share (EPS).

The company attributes its revenue growth to three core factors: an expanding customer base, increased order frequency, and higher average order values. While its Dutch subsidiary, Greetz, experienced a slow start in the second half of the year, recent improvements suggest a positive turnaround. Meanwhile, Moonpig’s Experiences segment remains focused on executing its transformation strategy.

A key driver of Moonpig’s performance has been the rising attachment rate of gifts to greeting card orders. The company has enhanced its recommendation algorithms and expanded its product range by introducing trusted third-party brands. 

Additionally, Moonpig’s Plus subscription service continues to gain traction, offering customers exclusive benefits and discounts. The Moonpig Guaranteed Delivery service, which ensures timely delivery for card-only orders, has also gained popularity, now being used for one in five such purchases in the UK. 

On the financial front, Moonpig remains highly cash-generative, with net leverage expected to be approximately 1.0x Adjusted EBITDA by 30 April 2025. The company is on track to complete its initial £25 million share repurchase program by the end of the financial year. In light of its free cash flow generation, Moonpig’s Board has announced plans to launch a new £60 million share buyback program in FY26.