|
Moonpig Group PLC on Thursday said it is well positioned for future growth as it announced a new £60 million share buyback. The London-based online greeting card and gifting platform expects full year revenue between £350 million and £353 million in the financial year ending 30 April 2025. This would be growth of as much as 3.5% from £341.1 million in the previous financial year. In addition, the firm anticipates a stronger than expected adjusted earnings before interest, tax, depreciation and amortisation margin, which will be at the top end of its 25% to 27% guidance range, and double-digit percentage growth in adjusted earnings per share. In the year to April 30, 2024, Moonpig reported an adjusted Ebitda margin of 28.0% and adjusted EPS of 12.7 pence. In response, shares in Moonpig were 1.6% higher at 224.00p each in London on Thursday morning. Alongside the Moonpig brand, the company owns the Red Letter Days and Buyagift brands in the UK and the Greetz brand in the Netherlands. Revenue growth continues to be underpinned by strong sales at Moonpig, driven across three core growth levers: customer base, order frequency and average order value, the firm said. Greetz had a softer start to the second half of the year, but recent performance has been improving, it added, while at Experiences, the focus is on delivering the ‘transformation plan’. The company highlighted strong growth in gift attachment rates at Moonpig and Greetz in the second half, supported by enhanced recommendation algorithms and the introduction of third-party brands. Gross margins remain strong, consistent with the first half of the year. Reflecting its strong cash generation, Moonpig announced a new £60 million share buyback programme. This will start in the new financial year after the completion of the existing £25 million programme. Chief Executive Nickyl Raithatha commented: ‘We are pleased that Moonpig Group continues to deliver strong profitability and high free cash flow generation, driven by the power of the Moonpig brand. Our strong performance reflects our unique customer proposition and sustained investments in technology and data.’ Raithatha said the company remains ‘well positioned’ to benefit from the long-term structural shift to online and to ‘deliver mid-teens percentage growth in adjusted earnings per share over the medium-term’. Copyright 2025 Alliance News Ltd. All Rights Reserved.
|
