Moonpig Group plc has announced its half-year results for the six months ended 31 October 2023. The company reported a revenue growth of 6.5% year-on-year to £152.1 million, with adjusted EBITDA increasing to £41.4 million. Adjusted profit before taxation was £20.8 million, reflecting stronger trading offset by higher interest charges and technology platform investments. The company's gross margin rate strengthened by 4.4% points year-on-year, and it maintained strong operating cash conversion and reduced net debt.
Moonpig's revenue growth was driven by its core brand, Moonpig, which saw a 4.9% year-on-year increase in revenue. Greetz, another brand under the company, experienced a decrease in revenue of 9.8% but showed improvement in trading throughout the period. The Experiences segment saw a pro forma revenue increase of 4.5%.
The company's focus on technology innovation has contributed to its revenue growth. Moonpig Plus subscriptions have driven higher customer order frequency, and Greetz Plus subscriptions are scheduled for roll-out in the second half of the financial year. Moonpig has also introduced new features to personalize recommendations to customers, leveraging AI capabilities and incorporating customer-level data.
Moonpig has invested in technology at its Experiences segment, including a full re-platforming and the introduction of new payment options and upsell recommendations. The company has also improved its cross-selling of gift experiences to Moonpig customers.
Despite the challenging macro-economic environment, Moonpig remains focused on profitability and expects its full-year consolidated revenue and adjusted EBITDA to remain unchanged. The company aims to reduce its net debt to adjusted EBITDA ratio by approximately 0.5x during FY24.
CEO Nickyl Raithatha commented on the results, stating, "Our focus on technology is driving this growth, underpinned by our resilient, profitable, and cash generative business model, leveraging our unique use of data to drive customer loyalty."