Moonpig shares jumped on Thursday after reporting a solid set of full-year numbers, with revenue rising 6.5% to £373 million and adjusted earnings per share up 19.5% to 18p, helped by profit growth and the ongoing share buyback programme.
Adjusted EBITDA came in at £104.6 million, up 8.1%, with margin nudging up to 28%. Free cash flow grew 11.2% to £73.5 million.
The Moonpig brand itself grew revenues 8.6%, while Dutch business Greetz added 1.5%.
Investors will have been delighted to see the strong performance translate to a 25% increase in the full-year dividend to 3.75p.
In terms of its key performance measures, active customers across both brands grew to 12.3 million. Average order value rose 5.7%, with customers picking out higher-value gifts helping drive the uptick.
There’s a lot to like in Moonpig’s update and the market reacted accordingly with shares 10% higher at the time of writing.
Mark Crouch, market analyst for eToro, says: “Moonpig’s results read a little like one of its best-selling cards, familiar, reliable and delivering exactly what shareholders wanted to see. Revenue growth, expanding margins and a near 20% increase in adjusted earnings per share underline the strength Moonpig has built through repeat customer habits rather than one-off purchases.”
“For Moonpig, loyalty is a significant asset. With more than 12 million active customers, the company benefits from a steady stream of birthdays, anniversaries and milestones that arrive regardless of the economic backdrop. Customers are not only returning but spending more, trading up to premium gifts, larger card formats and faster delivery options.”