26th Jun 2025 09:37
(Alliance News) - Moonpig PLC on Thursday said its chief executive was stepping down as it reported modest sales growth with strength in the core Moonpig brand offset by declines in Greetz and Experiences.
In response, shares in Moonpig fell 9.9% to 219.52 pence each on Thursday morning, the worst performing stock on the FTSE 250, which was up 0.2%. The stock fell 4.1% ahead of the news on Thursday.
The London-based online greeting card and gifting company said Nickyl Raithatha will step down as chief executive after seven years in the role.
Raithatha has a 12-month notice period and Moonpig said the search for a successor has begun.
Raithatha will continue as CEO while a successor is appointed and will ensure a smooth transition, the firm said in a statement.
The departing CEO said the business is in "excellent shape, with strong momentum, an experienced senior leadership team, and significant growth potential."
The news came as Moonpig reported pretax profit slumped to GBP3.0 million in the financial year to April 30 from GBP46.4 million a year prior.
Excluding goodwill impairments and amortisation, adjusted pretax profit increased 16% to GBP67.5 million from GBP58.2 million.
Revenue increased by 2.6% to GBP350.1 million from GBP341.1 million.
The firm reported strong trading at Moonpig and continued progress towards growth at Greetz.
Moonpig and Greetz active customers grew to 12.0 million from 11.5 million a year ago, with both brands increasing their customer base in the second half. Total orders grew by 4.1% with average order value rising by 2.1%.
Moonpig revenue increased by 8.6% year-on-year, underpinned by growth in orders, while Greetz sales fell 4.7% on-year, the pace of decline moderating from 7.5% in financial 2024.
In Experiences, the firm said it is taking proactive steps to reposition the division "against a challenging market environment."
Sales in Experiences fell 19% year-on-year with the unit "more exposed to cyclical pressures than the rest of the group".
The company took a GBP56.7 million impairment charge for Experiences in the first half of the financial year.
Moonpig said trading in the new financial year has been in line with expectations, including strong Father's Day trading.
"Moonpig is growing at double-digit levels and Greetz revenue is in line with the prior year. At Experiences, we continue to build on recent operational momentum," it said.
For financial 2026, the company expects adjusted earnings before interest, tax, depreciation and amortisation to grow at a mid-single digit percentage rate and growth in adjusted earnings per share at between 8% and 12%, with continued strong free cash flow generation funding ongoing investment in our growth strategy and consistent returns to shareholders.
In financial 2025, Moonpig reported adjusted Ebitda of GBP96.8 million, up 1.3% from GBP95.5 million a year prior and adjusted EPS of 15.0p, up 18% from 12.7p.
Looking at the medium term, Moonpig continues to target double-digit revenue growth, adjusted Ebitda margin of 25% to 27% and mid-teens growth in adjusted EPS.
Free cash flow improved to GBP66.1 million from GBP61.0 million. The dividend was reinstated at 3.0p per share compared to nil a year prior.
By Jeremy Cutler, Alliance News reporter
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