Moonpig sees tumble in revenue and profit as pandemic boost fades

Moonpig has seen annual sales and profits tumble as the pandemic boost that drove surging demand for online cards begins to ease.

The business reported a 30.9% slump in underlying pre-tax profits to £51.5 million for the year to April 30 – its first full year as a stock market listed company.

Revenue also dropped sharply, falling 17.3% to £304.3 million.

The 2021 financial year was a particularly successful one for the company, with an underlying pre-tax profit of £74.6 million and a revenue of £368.2 million.

Despite the falls in both profit and revenue, the card company gave a bullish outlook, with the anticipated completion of the acquisition of Buyagift by the end of July 2022 expected to increase revenue to about £350 million.

Chief executive officer Nickyl Raithatha said the company’s gifting business has grown by over 100% in the past two years and the acquisition of Buyagift will “accelerate” Moonpig’s journey to becoming the “ultimate gifting companion”.

He said: “We have significantly outperformed the targets set out at the initial public offering and recently announced the proposed acquisition of Buyagift, which will accelerate our journey to becoming the ultimate gifting companion.

“Our gifting business has grown by over 100% in the past two years and we are able to adapt with speed and agility to any changing consumer behaviours.”

The company added it has significantly expanded its range of flower and plants, which includes a Cath Kidston flower range, and the global design platform now boasts over 43,000 card designs, compared to 27,000 by the end of April 30 2021.