HALF YEAR RESULTS FOR THE SIX MONTHS ENDED 31 OCTOBER 2021
Strong half year results and the Group’s highest ever gifting share of total revenue
Summary H1 FY22 financial results
£m | Six months to 31 October 2021 | Six months to 31 October 2020 | Six months to 31 October 2019 | H1 FY22 Year-on-year % | H1 FY22 Two-year growth % |
Group revenue | 142.6 | 155.9 | 66.3 | (8.5%) | 115.2% |
Adjusted EBITDA1 | 35.0 | 41.2 | 15.0 | (15.1%) | 132.5% |
Adjusted EBITDA margin1 | 24.5% | 26.4% | 22.7% | (1.9%pts) | 1.8%pts |
Reported profit before tax | 18.7 | 33.0 | 9.4 | (43.2%) | 99.7% |
Adjusted profit before tax1 | 24.1 | 34.8 | 9.8 | (30.6%) | 147.0% |
Basic earnings per share (pence)2 | 4.5p | N/A | N/A | N/A | N/A |
Net debt | (113.0) | (30.9) | (33.9) | (265.4%) | (233.0%) |
1 Before adjusting items of £5.4m in H1 FY22 and £1.8m in H1 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 restructuring in February 2021.
3 Two-year growth included to contextualise the short-term effect of Covid-19 upon trading.
Results Summary
- Revenue growth of 115% on a two-year basis, reflecting significant customer base growth, higher customer purchase frequency and growth in attached gifting.
- Revenue and Adjusted EBITDA down 8.5% and 15.1% year-on-year respectively, reflecting lapping of periods of severe Covid-19 related lockdown restrictions.
- Adjusted EBITDA margin rate of 24.5% (FY21: 25.0%), consistent with the Group’s medium-term target range of approximately 24.0% to 25.0%.
- Operating cash conversion of 38% (H1 FY21: 62%), reflecting working capital seasonality and the unwind of high year-end creditor balances related to trading through lockdown.
Strategic & Operational Highlights
An enduring transformation in the scale of our business:
- Delivered 19.5 million orders, helping our customers to stay connected with their loved ones through the emergence from lockdowns in the UK and the Netherlands (H1 FY20: 9.5 million).
- Very high retention of customers acquired during Covid-19, with 89% of year-to-date revenue derived from existing customers.
The technology and data platform continues to drive our growth flywheel:
- Grew the app to over 42% of Moonpig’s orders for H1 FY22.
- Continued expansion of the Group’s database to over 60 million reminders set as at 31 October 2021 (30 April 2021: over 50 million).
- Data science initiatives to improve search to help consumers navigate our constantly expanding cards range, deliver personalised landing pages for customers through reminder, and more relevant gift recommendations.
- New feature launches include a new editor for the customisation of cards and personalised gifts, and improved user interface for card size format upsell.
- 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 (H1 FY21: 44%).
- Expanded our gifting range including a branded “shop-in-shop” partnership with Virgin Wines, the launch of fragrances, innovation in our letterbox gifting range and expansion of our branded toys offering.
- Launch of new packaging designs and formats across our gifting range to elevate the recipient experience.
- Continued expansion of our Global Design Platform, which now features over 33,000 card designs and several new licence partners (30 April 2021: 27,000).
Outlook
- Group annual revenue for FY22 is now expected to be at the upper end of the previous guidance range of between approximately £270 million and £285 million. This includes approximately £20 million that is non-recurring as it relates to elevation in frequency above the expected exit rate, of which more than three quarters arose in the first half of the year.
- Customer purchase frequency has not yet fully normalised, but the data we now have provides us with confidence that we will exit the financial year with an enduring uplift in UK customer purchase frequency of approximately 15% compared to pre-Covid-19 levels.
- In the Netherlands, we expect customer purchase frequency to settle at a rate that is in line with existing expectations, reflecting the fact that Greetz does not yet have access to the new Group technology platform.
- With respect to the medium-term, the Group continues to target underlying annual revenue growth in the mid-teens and an Adjusted EBITDA margin rate of approximately 24% to 25%.
Nickyl Raithatha, CEO, commented:
Moonpig Group continues to successfully deliver against its strategy to become the ultimate gifting companion. Our new technology and data platform continues to make it easier for customers to remember, find, create and send the perfect greeting card and the perfect gift to their loved ones. As a result, our half year results demonstrated even stronger customer retention and our highest-ever proportion of revenue from gifting.
With revenue more than doubling over the past two years, we are confident that we have achieved an enduring transformation in the scale of our business. The long-term opportunity remains vast, and we have never been in a better position to capture this growth.
Investor and analyst meeting
The half 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 9 December 2021. 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/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 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.