This article first appeared on GuruFocus .
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Revenue:Increased by 6.5% to GBP 373 million.
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Adjusted EBITDA:Increased by 8.1% to GBP 104.6 million.
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Adjusted EBITDA Margin:Remained strong at 28%.
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Adjusted Basic EPS:Increased by 19.5% to 18 pence.
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Free Cash Flow:Increased by 11.2% to GBP 73.5 million.
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Order Growth:Orders increased by 2.1% to 36 million.
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Active Customer Base:Increased by 300,000 to 12.3 million.
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Average Order Value:Increased by 5.7% to GBP 9.32 per order, excluding VAT.
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Gift Attach Rate:Increased by 0.2 percentage points to 17.9%.
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Card Revenue:Increased by 9.4% during FY26.
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Attached Gifting Revenue:Increased by 6.5%.
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Experiences Revenue:Decreased by 4.5% for the full year.
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Gross Profit:Increased by 4.5% to GBP 218 million.
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Net Debt to Adjusted EBITDA:1.03 times at year-end.
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Total Dividend:Proposed at 3.75 pence per share, up 25% year-on-year.
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Release Date: June 25, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Moonpig Group PLC ( FRA:769 ) reported a 6.5% increase in revenue to GBP373 million, driven by growth at Moonpig and a return to growth at Greets.
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The company achieved an 8.1% increase in adjusted EBITDA to $104.6 million, with a strong margin of 28%.
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Moonpig Group PLC ( FRA:769 ) saw a 19.5% rise in adjusted basic EPS, reaching $0.18 pence, supported by profit growth and share buyback programs.
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The company continues to generate significant cash, with free cash flow increasing by 11.2% to $73.5 million.
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Moonpig Group PLC ( FRA:769 ) has a strong customer base, with 90% of revenue coming from existing customers, highlighting customer loyalty and retention.
Negative Points
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Purchase frequency slightly decreased from 2.94 to 2.92 orders per active customer, particularly affecting Greets.
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Gross margin at Moonpig decreased by 1.1 percentage points to 55.9%, partly due to investments in delivery propositions.
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The experiences segment saw a 4.5% decrease in revenue, despite improvements in product range and trading performance.
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Gift attach rates remained relatively stagnant, with only a modest increase to 17.9%, indicating challenges in cross-selling gifts with cards.
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The company faces challenges in fully realizing the potential of its assets and capabilities, as noted by the CEO.
Q & A Highlights
Q: Could you give some color on how you expect the three revenue KPIs (new customer numbers, frequency, and average order value) to play out in the midterm? A: Our strategy is to grow all three KPIs, but not necessarily all at once. We've seen strong momentum in new customer numbers and average order value (AOV) growth, driven by stamp price increases and tracked delivery. Frequency remains a significant opportunity, and we are exploring different ways to address it by segmenting and understanding customer missions better. - Catherine Faiers, CEO
Q: How much of the AOV growth was driven by stamp price increase and tracked delivery? A: About half of the 5.7% AOV growth was due to changes in the postal proposition, with approximately one percentage point from stamp price increases and two percentage points from tracked delivery. We expect more than half of our card-only orders to go through tracked delivery in the future. - Andy MacKinnon, CFO
Q: On the Plus membership, are you seeing new cohorts being brought in, or is it still mainly your top-tier customers? A: The performance of Plus cohorts remains strong, showing loyalty. We continue to drive growth in Plus membership, and while we haven't seen significant differences in recent cohorts, we are exploring opportunities to evolve the proposition further. - Catherine Faiers, CEO
Q: Can you provide more details on the financial framework for revenue growth and the impact of stamp price changes? A: Our financial framework targets mid to high single-digit revenue growth. Stamp price changes contribute to basket size, but we adjust other parts of the proposition accordingly. We have a strong track record of driving revenue growth through various levers, depending on the external environment. - Andy MacKinnon, CFO
Q: What are the key areas of focus for Moonpig's strategic growth? A: Key areas include personalization, expanding the delivery proposition, and improving the customer journey. We aim to enhance delivery options, leverage our data assets for personalization, and make the shopping experience more efficient for customers. - Catherine Faiers, CEO
Q: How do you plan to address the temporary reduction in frequency at Greets due to partnerships? A: The reduction in frequency at Greets is due to partnerships with local brands, which sometimes result in lower lifetime value customers. We aim to balance partnerships with driving underlying customer frequency and engagement. - Catherine Faiers, CEO
Q: What is the outlook for the experiences business in FY '27? A: We are pleased with the trajectory of the experiences business, moving closer to flat year-on-year growth. We are investing in a stronger range of partners and improving recipient experiences, which will continue throughout FY '27. - Andy MacKinnon, CFO
Q: How do you plan to leverage group advantages for cost and revenue benefits? A: We are centralizing certain functions to drive cost efficiencies and speed of execution. Sharing capabilities across the group will help us execute faster and align better, ultimately driving performance and revenue growth. - Catherine Faiers, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
