2022 Full-Year Results Announcement

FINAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 30 APRIL 2022

Transformational first full year post-Initial Public Offering (“IPO”)

Summary financial results

^{1 Before adjusting items of £11.6m in FY22 and £41.7m in FY21. See definition of Alternative Performance Measures below.}

^{2 Earnings per share not disclosed for periods arising prior to the Group’s formation as a result of the pre-IPO reorganisation in February 2021.}

^{3 Two-year growth rates have been included to contextualise the short-term effect of lockdown restrictions upon trading.}

^{4 Net debt is a non-GAAP measure and is defined as total borrowings less cash and cash equivalents.}

Results summary

• Revenue growth of 75.8% on a two-year basis, reflecting significant growth in customer base, higher customer purchase frequency and a further increase in attached gifting. Revenue was down 17.3% year-on-year, reflecting annualisation against periods of severe lockdown restrictions and ahead of our expectations at the beginning of the financial year.
• Adjusted EBITDA margin rate of 24.6% (FY21: 25.0%), consistent with medium-term targets provided in April 2022.
• We have seen no material impact on gross margin rate from cost inflation.
• Reduction in net debt to £83.8m (April 2021: £115.1m), with gross cash and cash equivalents of £101.7m (April 2021: £66.0m), reflecting the strong cash generative nature of our business.

Strategic and operational highlights

Enduring two-year transformation in the scale of our business:

• Delivered 39.8m orders, helping our customers to connect with people they care about (FY20: 24.3m, FY21: 50.9m).
• Very high retention of customers, including those acquired during FY20 and FY21, with 87% of the Group’s total revenue derived from existing customers (FY20: 79%, FY21: 75%).
• Success in engaging customers and encouraging them deeper into our data-driven ecosystem has enabled the Group to extend its leadership position in UK online cards; market share in calendar year 2021 was 4.4x¹ larger than that of its nearest online competitor (2019: 2.8x larger).
• Since year end, we have announced the proposed acquisition of Buyagift, the UK’s leading gift experience platform, which will deliver a step-change in our gifting proposition.
• The acquisition is at an attractive valuation with cash consideration of £124m, compared to an unaudited FY22 EBITDA of £14m and is expected to drive over 20% accretion to annualised Adjusted EPS from acquisition. The acquisition is on track to complete by the end of July 2022.

Market-leading technology and data platform continues to drive our growth flywheel:

• Grew the app to over 43% of Moonpig orders (FY20: 16%, FY21: 37%).
• Leveraged proprietary data and AI capabilities to drive expansion of the Group’s database to over 70m reminders set (April 2021: over 50m).
• Continued our progress towards a “hyper-personalised” customer journey, including personalised landing pages for customers who click on a reminder, upcoming occasion reminders on our home-page and personalised search results.
• Launch of a personalised promotions engine to drive customer behaviours associated with higher retention and frequency, such as targeted offers to incentivise first time use of the Moonpig app and first time gift attachment.
• Migration of Greetz onto the Group platform remains on course for completion by the end of calendar year 2022.

Continued progress on enhancing our leading customer proposition:

• Highest ever gifting share of total revenue, at 48%, reflecting further progress in our strategy to become the ultimate gifting companion (FY20: 42%, FY21: 46%).
• Significant expansion in Moonpig’s range of flowers and plants, including the Cath Kidston flowers range.
• Launch of 500 new branded gifting SKUs at Greetz including Toblerone and Miss Patisserie.
• Launch of a UK jewellery range with brands including Lisa Angel, Posh Totty and Joma Jewellery.
• Continued expansion of our Global Design Platform, which now features over 43,000 card designs (30 April 2021: 27,000) and 52% of publishers now creating designs for Greetz as well as Moonpig.

Outlook

Confident in outlook for FY23, reconfirming existing guidance:

• We are pleased with the start to the new financial year and remain confident in our existing expectations for Group trading in FY23.
• Based on the anticipated completion of the acquisition of Buyagift by the end of July 2022, we expect revenue for the enlarged Moonpig Group in FY23 to be approximately £350m.
• In the medium-term, we continue to target mid-teens percentage underlying revenue growth for the enlarged Group. Margin trends remain resilient in the near and medium-term, and the proposed acquisition of Buyagift is expected to be margin accretive. In view of this, we have recently raised the Group’s medium-term Adjusted EBITDA margin rate target to between approximately 25.0% and 26.0%.

Nickyl Raithatha, CEO, commented:

“Our first full year as a listed company has been another transformational period for Moonpig Group – financially, operationally and strategically. We have significantly outperformed the targets set out at IPO, and recently announced the proposed acquisition of Buyagift, which will accelerate our journey to becoming the ultimate gifting companion.

Moonpig Group has delivered an enduring uplift in revenue over the past two years, with a step-change in the size of our customer base, and with each of our customers purchasing more often than before. We have further extended our market leadership in online cards, demonstrating the strength of our data-led business model and validating our significant investments in technology. Our gifting business has grown by over 100% in the past two years, and we are able to adapt with speed and agility to any changing consumer behaviours.

We remain confident in the outlook for the current year, with our loyal customers continuing to rely on Moonpig to connect with loved ones at moments that matter. The long-term opportunity remains vast and we have never been in a better position to capture it.”

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, this morning 29 June 2022.

Nickyl Raithatha (CEO) and Andy MacKinnon (CFO) will host a Q&A for analysts and investors via webcast at 9:30am. 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/f1d5b255-6d65-4462-8c4c-6e8b966fcd68.

Enquiries:

Brunswick Group                        
Sarah West, Fiona Micallef-Eynaud        
+44 20 7404 5959            
moonpig@brunswickgroup.com 

Moonpig Group                       
Nickyl Raithatha, Chief Executive Officer
Andy MacKinnon, Chief Financial Officer
investors@moonpig.com

About Moonpig Group

Moonpig 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 http://www.moonpig.group. 

Forward Looking Statements:

This announcement contains certain forward-looking statements with respect to the financial condition, results or operation and businesses of Moonpig Group plc. Such statements and forecasts by their nature involve risks and uncertainty because they relate to future events and circumstances. There are a number of other factors that may cause actual results, performance or achievements, or industry results to be materially different from those projected in the forward-looking statements.

These factors include general economic and business conditions; changes in technology; timing or delay in signing, commencement, implementation and performance of programmes, or the delivery of products or services under them; industry; relationships with customers; competition and ability to attract personnel. You are cautioned not to rely on these forward-looking statements, which speak only as of the date of this announcement. We undertake no obligation to update or revise any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances.

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