RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 30 APRIL 2021
Strong maiden results and clear progress executing against the strategy outlined at IPO
Summary financial results
£m | Year to 30 April 2021 | Year to 30 April 2020 | YoY | YoY% |
Group revenue | 368.2 | 173.1 | 195.1 | 113% |
Adjusted EBITDA1 | 92.1 | 44.4 | 47.7 | 107% |
Adjusted EBITDA margin1 | 25.0% | 25.6% | (0.6%pts) | n/a |
Reported profit before tax | 32.9 | 31.8 | 1.1 | 3% |
Adjusted profit before tax1 | 74.6 | 33.2 | 41.4 | 125% |
Basic earnings per share (pence) | 6.1p | n/a | n/a | n/a |
Net debt | 115.1 | 28.3 | 86.8 | 307% |
1 Before adjusting items of £41.7m in FY21 and £1.4m in FY20. See definition of Alternative Performance Measures below.
Results Summary
- Revenue and Adjusted EBITDA each more than doubled during a transformational year.
- Revenue growth of +113% to £368.2m, reflecting strong new customer acquisition and higher purchase frequency.
- Adjusted EBITDA growth of +107% to £92.1m, ahead of expectations at the IPO and at the top end of guidance provided in February 2021.
- Highly cash generative with operating cash flow of £97.2m (FY20: £51.0m) and adjusted operating cash conversion of 106% (FY20: 115%).
Strategic & Operational Highlights
The technology and data platform continues to drive our underlying growth flywheel:
- Completed the three-year rebuild of Moonpig’s proprietary technology and data platform.
- Expanded the Group’s database to over 190 million cumulative transactions and over 50 million reminders set as at 30 April 2021.
- Grew the app to 37% of Moonpig’s orders for FY21, with the app number 1 for iOS and Android on multiple occasions.
- Delivered innovations such as augmented reality, e-cards, Group Cards and Sunday delivery.
Significant progress on further enhancing our leading customer proposition:
- Added a further 10,000 unique card designs to our Global Design Platform, growing the total to 27,000 at period close.
- Added over 70 leading consumer gifting brands, including LEGO® and Cath Kidston.
- Launched a new creative platform for both the Moonpig and Greetz brands.
- Extended already market-leading cut-off times to 10pm in the Netherlands and 9pm in the UK for same day dispatch.
- Delivered 50.9 million orders, helping our customers to stay connected with their loved ones during lockdown.
Outlook
- The Group is well positioned for sustained underlying growth as it continues to deliver against the strategy outlined at IPO.
- The new financial year has started moderately ahead of expectations, consistent with the slower lifting of lockdown restrictions in the UK and the Netherlands.
- As restrictions have eased, we have seen customer purchase frequency start to normalise from elevated levels, and we expect this to continue until frequency is approximately 5% ahead of pre-Covid-19 levels, in line with previous expectations.
- Retention of customers acquired during the past year is consistent with historical cohorts, and consequently there will be an enduring uplift in the scale of the business.
- We now expect Group revenue in FY22 to be approximately £250m to £260m, implying growth of approximately 45% to 50% compared to FY20.
- As previously stated, this represents a year-on-year decrease in headline revenue, reflecting normalisation of purchase frequency and a headwind from the large cohort of new customers following historical second year spending patterns.
- In line with our approach during the second half of FY21, we will continue to prioritise additional investments in marketing and market share capture over short-term maximisation of profit margin rate.
- In the medium-term, we continue to target annual revenue growth in the mid-teens and an Adjusted EBITDA margin of approximately 24% to 25%.
Nickyl Raithatha, CEO, commented:
“The past year was a milestone year for Moonpig Group as we accelerated the delivery of our strategy to become the ultimate gifting companion, doubled both revenue and Adjusted EBITDA, dispatched over 50 million customer orders and floated on the London Stock Exchange.
We have completed a three-year technology and data re-platforming project, which allows us to leverage our unique gifting dataset in new ways by personalising the customer experience and accelerating the pace at which we deploy innovation. The scale of our proprietary data, with over 50 million reminders set, is a growing source of competitive advantage. Our customer proposition continues to improve, with enhancements to our card and gifting ranges, and more delivery options than ever before.
In the past year we have delivered an enduring transformation and step-change in the scale of our business. 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. I want to personally thank the whole Moonpig Group team for their hard work and for making this all possible in such fast moving and challenging circumstances.”
Investor and analyst meeting
The full year results presentation will be available on the Investor Relations section of Moonpig Group's corporate website (www.moonpig.group/investors) shortly after 7:00am on 27 July 2021. Nickyl Raithatha (CEO) and Andy MacKinnon (CFO) will host a Q&A for analysts and investors via webcast at 8:30am. Please note the presentation will not be repeated during the webcast.
Anyone wishing to join the Q&A should register via the following link:
https://www.lsegissuerservices.com/spark/MoonpigGroup/events/dd217909-1690-4fc2-94cf-0194a2f6e7a4
Enquiries:
Brunswick Group
Sarah West, Fiona Micallef-Eynaud
+44 20 7404 5959
moonpig@brunswickgroup.com
Moonpig Group
investors@moonpig.com
About Moonpig:
Moonpig Group plc (the "Group") is a leading online greeting card and gifting platform, comprising the Moonpig brand in the UK and the Greetz brand in the Netherlands. In both markets, the Group is the clear online market leader in cards.
The Group's leading customer proposition includes an extensive range of cards, a curated range of gifts, personalisation features and next day delivery offering.
The Group offers its products through its proprietary technology platforms and apps, which utilise unique data science capabilities designed by the Group to optimise and personalise the customer experience and provide scalability. Learn more at https://www.moonpig.group/