(Alliance News) - Moonpig Group PLC on Tuesday lifted its revenue guidance for financial 2022 on a strong trading performance and expressed confidence in a permanent uplift in "customer cohort frequency."
The London-based online greeting card and gifting company said its performance for the financial year to April 30 has remained strong.
Moonpig lifted its annual revenue expectations to GBP300 million, with the upgrade reflecting "the temporary impact of Covid-19 on customer behaviour in late December and January."
In financial 2021, Moonpig generated revenue of GBP368.2 million. It had previously guided for financial 2022 revenue of between GBP250 million and GBP260 million.
The upgraded guidance, therefore, reflects a 23% decline compared to financial 2021 levels but between a 15% to 20% increase compared to the previous guidance.
The company anticipates that underlying revenue is going to remain unchanged at approximately GBP265 million in financial 2022.
Moonpig stated that trading in February and March has provided further evidence that supports the expectations of a "permanent uplift in customer cohort frequency" compared to before Covid-19.
Accordingly, Moonpig said it remains confident in existing expectations for financial 2023 and reiterated a medium-term target for adjusted earnings before interest, tax, depreciation, and amortisation margin of roughly 24% to 25%.
Chief Executive Officer Nickyl Raithatha said: "Today's update reflects continued strong trading performance post-lockdowns, including a very successful UK Mothers' Day, and we remain confident in the outlook for the year ahead. Moonpig Group has delivered a permanent step change in scale over the past two years, with a larger customer base displaying higher loyalty than pre-pandemic. The long-term opportunity remains vast, and we have never been in a better position to deliver against Moonpig Group's strategy to become the ultimate gifting companion."
Shares were up 1.7% at 242.00 pence each on Tuesday morning in London.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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Moonpig Gr (MOON)