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Moonpig sales and profits double thanks to pandemic

Moonpig made an adjusted profit before tax of £92m

Moonpig confirmed on Tuesday that both its annual sales and profits have doubled as the greetings cards company released its first set of results since its IPO in February.

The company said it benefited from an increase in spending during the pandemic.

Moonpig‘s revenue climbed to £368m in the year to April, an increase of 113% compared to 12 months ago.

The firm made an adjusted profit before tax of £92m, up from £44m a year before.

Moonpig’s profit levels came in at the top end of its guidance which it established when it floated back in February.

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However, the Moonpig share price is down by 6% on Tuesday to 399.1p per share.

The online retailer said will continue to scale as it is retaining customers acquired over the past year.

The group will make investing in marketing and market share capture over profit margin a priority, targeting annual revenue growth of around 15% and an adjusted underlying earnings (EBITDA) margin of 24-25% in the medium-term.

“Our customer proposition continues to improve, with enhancements to our card and gifting ranges, and more delivery options than ever before,” said Moonpig chief executive, Nickyl Raithatha.

“The long-term growth opportunity remains vast, with the majority of the card and gifting market still offline, and we have never been in a better position to capture this growth.”

In the next year, sales are expected to grow by half and reach between £250m and £260m.

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