Moonpig Group Plc has released a trading update, indicating that its trading performance has remained in line with expectations across all of its brands. The company experienced strong growth at Moonpig, with volume growth during peak trading seasons such as Christmas, Valentine's Day, and Mother's Day. The company's innovative card creativity features have been well-received, with customers using them to enhance nine million personalized greeting cards. Moonpig Group remains focused on deleveraging and expects to reduce the ratio of net debt to Adjusted EBITDA to below 1.5x by 30 April 2024.
Nickyl Raithatha, CEO of Moonpig Group, expressed delight at the consistent revenue growth at the Moonpig brand, attributing it to the company's focus on technology investment and its unique use of data to drive customer loyalty. The company continues to innovate to attract and retain loyal customers and is well-positioned to benefit from the long-term structural market shift to online.
In addition to the trading update, Moonpig Group announced a new four-year, committed, multi-currency revolving credit facility of 180m with a syndicate of banks. The new facility replaces the previous term loan and revolving credit facilities and is fully available for general corporate purposes. The facility covenants include a maximum ratio of net debt to Adjusted EBITDA of 3.5x until 30 April 2025 and 3.0x thereafter, as well as a minimum Adjusted EBITDA interest cover ratio of 3.5x for the term of the facility.
Moonpig Group plc is a leading online greeting cards and gifting platform, comprising the Moonpig, Red Letter Days, and Buyagift brands in the UK and the Greetz brand in the Netherlands. The company's leading customer proposition includes an extensive range of cards, a curated range of gifts, personalization features, and next day delivery offering. Moonpig Group offers its products through proprietary technology platforms and apps, utilizing unique data science capabilities designed to optimize and personalize the customer experience and provide scalability.