M

a pig has “prioritised” its greeting card offering in a strategy to focus on the part of the business that has a “demonstrable track record of resilience” in tough economic times.

In an update ahead of its annual general meeting today (Tuesday), the online greeting cards and gifts platform, founded by former Dragons’ Den entrepreneur Nick Jenkins, said its trading performance was in line with expectations and it was set to reiterate existing guidance for the full financial year.

The retailer said: “In Art In the current economic environment, we prioritize greeting card sales that have a proven track record of resilience throughout the cycle, and we intend to continue this focus for the remainder of the full year 2023.”

Moonpig added that it also expects its business to return to “pre-COVID seasonality.”

Nikhil Raitatha, boss of Moonpig, said: “Moonpig Group’s trading remains robust and so do we is confident that full-year revenue will be roughly double the level achieved three years ago. The Group continues to offer a powerful and unique combination of market leading positions, strong customer retention, high profit margins and reliable cash flow.

“Against the current macroeconomic backdrop, our continued performance reflects the strength of our data-driven business model and the long-term opportunities in our markets.”

The business, which has faced increased competition from brick-and-mortar retailers after customers returned to stores following the easing of the Covid pandemic, bought Smartbox Group, which trades under the Red Letter Days and Buyagift brands, for £124m in May this year and Dutch online card and gift retailer Greetz in 2018.

Reported in June this year, annual results of the company until April 30, showed a 17.3% fall in annual revenue from £368.2m to £304.3m, while adjusted pre-tax profit fell from £74.6m to £51.5m, a drop of around 30%.

https://www.standard.co.uk/business/moonpig-goes-back-to-basics-and-prioritises-greetings-card-business-b1026803.html

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