Moonpig Group Plc's Finances Take a Dip, Yet Show Promise for the Future
Moonpig Projects Lower Pre-tax Profits for Financial Year 25; Announces Dividend, £60 Million Share Buyback; Expects Adjusted Earnings Growth in Future
Moonpig Group Plc, the online greeting card and gifting platform (MOON.L), sheepishly admitted a steep fall in their fiscal 2025 profit before tax, slid into the red on an after-tax basis, all while raking in higher revenues compared to last year. The struggle is real, folks!
The Board of directors is proposing a final dividend of 2.0 pence, culminating in total dividends for FY25 of 3.0 pence. In stark contrast, no dividends were paid in fiscal 2024. If approved at the 2025 AGM, this dividend will be dished out on November 20 to shareholders who've stayed loyal and remained on the register as of October 24.
To tickle their fancy even more, Moonpig plans to gobble up as much as £60 million worth of shares in fiscal 2026 through two separate programs, divided between H1 and H2. Once swallowed, these shares will be canceled, went the company's decree.
So, how's business, you ask? Well, it's been ticking along just fine, starting the new year on a high note, including a booming Father's Day trading session. The Moonpig brand is surging at double-digit levels, and Greetz's revenue is holding steady from the previous year.
Forecasting for fiscal 2026, Moonpig envisions Group Adjusted EBITDA growing at a mid-single-digit percentage rate, while they're aiming for growth in adjusted earnings per share at between 8 percent and 12 percent. In the long haul, they're aiming for double-digit revenue growth, an Adjusted EBITDA margin of 25-27 percent, and mid-teens growth in Adjusted earnings per share—quite the ambitious bunch, aren't they?
In the short term, however, they're anticipating consistent mid-teens growth in Adjusted earnings per share, hoping these hearts and flowers will win consumer favor.
Delving into the nitty-gritty, Moonpig's profit before taxation took a nose-dive of 93.6 percent, diving from £46.4 million a year ago to a mere £3 million. Translating this into after-tax losses, they racked up a £11.08 million shortfall, or 3.2 pence per share, a far cry from the £34.17 million profit and 9.6 pence per share a year ago. On an adjusted basis, they managed to rake in £67.5 million in pre-tax profit, a slight increase from £58.2 million the previous year. Their adjusted basic earnings per share climbed to 15.0 pence, up from 12.7 pence a year ago. Adjusted EBITDA swelled 1.3 percent to £96.8 million, although the adjusted EBITDA margin went south by 0.4 percentage points to 27.6 percent. Revenue grew 2.6 percent to £350.1 million, with the Moonpig brand expanding at 8.6 percent year-on-year.
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Insight Zone
Moonpig Group Plc's latest financial figures have painted a mixed picture. While the company is experiencing revenue growth of 2.6 percent to £350.1 million and a slight increase in adjusted pre-tax profit to £67.5 million, it has faced a steep decline of 93.6 percent in profit before taxation to £3.0 million and a slide into after-tax losses of £11.08 million. Adjusted earnings per share have risen, but profits have plummeted, signaling a shift to a loss-making position on a reported basis.
Investing in Moonpig Group Plc's shares could yield potential growth as they plan to buy back £60 million worth of shares in fiscal 2026, which could positively impact the business. Despite a significant dip in profit before tax, the company's financials show promise for the future, with projected mid-single-digit growth in Group Adjusted EBITDA and 8-12% growth in adjusted earnings per share.
