Key facts
- Moonpig's revenue increased by 6.5% to £373m in the fiscal year ended April 30.
- Profit before tax returned to £68.9m, up from £3m in the previous year.
- The company plans to increase its total dividend by 25% to 3.75p per share.
- A £65m share buyback program is scheduled to begin in the 2027 financial year.
- Average order value rose by 5.7%, attributed to the sale of higher-priced gifts and upselling.
Moonpig has reported a significant increase in revenue for the year ended April 30, attributing the growth to its technological capabilities and successful upselling strategies. The online card retailer saw its revenue climb 6.5% to £373m, up from £350.1m in the prior year. This performance marks a strong recovery, with profit before tax swinging back to £68.9m from £3m, largely due to the absence of a £56.7m impairment charge related to its experiences business.
Adjusted profit before tax also saw a healthy increase of 13.4%, reaching £76.5m. The company's board has recommended a 25% increase in its total dividend to 3.75p per share and confirmed plans for a £65m share buyback program to commence in the 2027 financial year. In early trading, Moonpig shares rose 4.3% to 225.2p.
The company highlighted a 5.7% rise in average order value, driven by the introduction of higher-priced gifts and upselling initiatives, including card size formats and premium delivery services. Card revenue alone increased by 9.4% year-on-year, despite the standard card price remaining unchanged. Tracked postal services now account for over 40% of UK card-only orders, contributing to customer retention.
Gift attachment orders increased slightly to 17.9% of total orders, boosted by partnerships with retailers like Next and Boots. Moonpig also expanded its brand presence in new markets, with total revenue from Ireland, Australia, and the US growing by 33% to £15.7m. While the experiences arm is being developed, revenue progression is expected to be moderated by lower commission rates.
Moonpig emphasized its data assets as a key competitive advantage. Its database of customer occasion reminders grew by 11.2% to 113 million, and Moonpig Plus and Greetz Plus memberships saw a 29.3% increase to 1.2 million. These initiatives have led to a 40% increase in orders placed within seven days of a reminder being sent, with memberships contributing approximately a quarter of all Moonpig orders.
Chief Executive Catherine Faiers stated that these capabilities deepen customer relationships and support higher purchase frequency, providing a strong foundation for long-term growth through personalization. The company also intends to continue investing in technology and AI to lower content creation barriers and improve infrastructure. Analyst Anubhav Malhotra of Panmure Liberum noted that the results contained no surprises and highlighted Moonpig as a rare stock achieving both volume and price growth.