Moonpig delivers sales forecast hike as demand remains strong

Moonpig has hiked its full-year sales outlook as it said demand for online cards remains strong despite coronavirus restrictions lifting.

The group said it expects sales of between around £270 million and £285 million for the year to April 30 thanks to “strong” trading in the year so far.

It had previously forecast sales of between £250 million and £260 million.

The performance would mark a steep fall on the £368.2 million revenues notched up in the previous financial year when lockdowns sent trading soaring, though still a marked rise on pre-pandemic levels.

Moonpig – which floated on the stock market in February – said shoppers are not shunning online card buying since lockdowns have lifted.

The group said the frequency with which customers buy from its site remains high amid a “limited change in consumer mobility through the summer, despite the lifting of lockdown restrictions”.

The group has also been spending on promotions to drive business through app downloads, as well as adding customer reminders, while it is also investing further in technology.

Moonpig said: “As people return to offices and conditions normalise, the data we collect on customer behaviour will provide important insights.

“At the current time, our view on underlying growth trends, and our medium-term growth and margin targets, remains unchanged.”

It comes after a year of explosive growth for the group, with sales almost doubling in the year to April, as locked-down shoppers in both the UK and the Netherlands – where Moonpig trades under the Greetz brand – turned to online services.

Yet profits rose by a more modest 3% to £32.9 million, after shelling out around £42 million to list its shares in London.