Moonpig shares rose sharply on Wednesday after the group posted an upbeat trading update ahead of its annual general meeting.
Strong demand for product personalisation and artificial intelligence (AI) tech helped buoy the firm’s bottom line in recent months, as Moonpig saw its subscriber base top one million customers for the first time.
Customers are increasingly keen to ‘express themselves’ while sending a greetings card or gift, Moonpig said.
Around half of all its cards now include optional add-ons such as AI-generated stickers, audio or video messages, or personalised handwriting.
Moonpig shares rose over 8 per cent early on Wednesday, before edging back to around 208.50p and up 5.2 per cent.
Moonpig said trading in the first few months of its financial year had been line with forecasts, with the Moonpig brand delivering approximately 10 per cent year-on-year revenue growth.
Rising: Moonpig shares rose sharply on Wednesday after the group posted an upbeat trading update
Its Dutch business Greetz has returned to modest year-on-year growth on both a reported and constant currency basis.
Growth in orders was bolstered by an expanding active customer base, with subscription services Moonpig Plus and Greetz Plus exceeding 1million members.
Average order values increased in recent months, which was attributed to guaranteed delivery and gift attachment trends.
The business expects adjusted EBITDA to grow at a mid-single digit rate for the year, with adjusted earnings per share growth of between 8 per cent and 12 per cent.
It plans up to £60million in share buybacks during the year.
Moonpig added: ‘Following on from the successful launch of Hotel Chocolat and the Entertainer in FY25, we expect upcoming trusted brand launches in flowers and gifting – including Laura Ashley Flowers, Next Flowers and JoJo Maman Bébé – to support continued attach rate growth during the key Christmas, Valentine’s Day and Mother’s Day trading periods.
Nickyl Raithatha, chief executive of Moonpig, added: ‘We have had a good start to the year, demonstrating the continuing power of the Moonpig proposition.
‘We continue to use technology, AI and data to enable our customers to connect with their loved ones in new and creative ways. AI generated Stickers have quickly become our most widely adopted innovation, with customers now creating two million personalised images every month, demonstrating the resonance of our proposition and the scalability of our technology platform.’
‘Moonpig’s unique combination of leading market positions, strong customer retention, good profit margins and robust cash generation puts us in pole position to capitalise on the long-term structural shift to online.’
In June, Raithatha announced he planned to step down as chief executive of the business after seven years in the role. He is serving his 12-month notice period to ensure a smooth succession.
The group’s annual results published in June revealed that sales growth for the year ended 30 April 2025 fell short of market expectations.
Despite slower top-line growth, Moonpig’s adjusted pre-tax annual profit powered 16 per cent higher to £67.5million, ahead of the £63.3million the market was looking for.
Adam Vettese, a market analyst at eToro, said on Wednesday: ‘Moonpig is benefitting from resilient online demand, scalable tech and strong brands in its key markets, with solid growth in overall revenue and average order value.’
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