Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Moonpig slips into loss after £50m write-down hits experiences division

by December 11, 2024
December 11, 2024
Moonpig slips into loss after £50m write-down hits experiences division

Moonpig, the online greetings card and gifting retailer, has reported a half-year pre-tax loss of £33.3 million after writing down the value of its “experiences” division by more than £50 million, underscoring the challenges posed by faltering consumer confidence in higher-priced discretionary treats.

The loss for the six months to October compares with a £18.9 million profit in the same period last year. Moonpig blamed the reversal on a £56.7 million impairment taken against its experiences arm, which launched last year and accounts for roughly 10 per cent of its business.

The write-down comes just two and a half years after Moonpig acquired Buyagift and Red Letter Days for £124 million from Otium Capital. While these brands offered thousands of activities from afternoon tea at Harrods to track days at the Top Gear circuit, Moonpig’s chief executive Nickyl Raithatha acknowledged that persuading consumers to spend £80 to £90 on such gifts remains tough in a cost-sensitive environment.

“This is our smallest segment, and it’s bearing the brunt of the macroeconomic headwinds,” said Raithatha. “Consumers are more hesitant to splurge on premium-priced discretionary items.”

The market reacted swiftly, sending Moonpig’s shares down 14.6 per cent, or 39p, to 228½p. Since its £1.2 billion flotation in February 2021 at 350p per share, the stock has lost nearly 44 per cent of its value.

Raithatha emphasised that the experiences division is undergoing a “full transformation.” Beyond leadership changes and outsourcing non-core tasks, the group will reposition the product mix and introduce more affordable options to reinvigorate the segment. The chief executive maintains that this is all that remains on the turnaround “to-do list.”

Despite the setback, Moonpig remains confident about its core operations. Group revenue rose 3.8 per cent to £158 million, buoyed by a 10 per cent annual increase in sales at the core Moonpig brand. This growth helped offset the downturn in experiences and a 4 per cent decline at its Netherlands-based subsidiary, Greetz. The active customer base across Moonpig and Greetz also grew to 11.7 million, up from 11.3 million a year earlier.

Moonpig’s leadership insists the market for greeting cards and small-value gifts remains resilient even amid mounting cost-of-living pressures and rising postage costs. “We’ve seen no dent in customer demand for cards,” Raithatha said. “Younger people continue to buy them, and geographically, demand has held steady.”

Looking ahead, Moonpig expects to meet full-year revenue guidance and remain on a growth trajectory. It is targeting double-digit revenue increases and improved profit margins over the medium term, banking on the enduring appeal of greeting cards and the potential to re-energise its experiences offering.

Analysts at Peel Hunt were similarly optimistic, describing the experiences performance as “weak” but noting the core business’s ongoing strength and operational efficiencies that are bolstering the bottom line. “We continue to believe in the equity story,” Peel Hunt said, reflecting a sentiment that Moonpig’s temporary setback in experiences need not define its longer-term prospects.

Read more:
Moonpig slips into loss after £50m write-down hits experiences division

0
FacebookTwitterGoogle +Pinterest
previous post
One Year of Javier Milei
next post
Pound hits 20-month high against Euro as ECB rate cuts loom

You may also like

Wordsmith AI becomes fastest Scottish startup to hit...

June 3, 2025

New Amazon warehouse strike dates mark a year...

July 27, 2023

Providing credibility to your numbers

March 18, 2024

Onlyfans’ Ukrainian-born owner Radvinsky reaps £1bn from adult...

September 7, 2024

How and why gender diversity is KEY for...

April 3, 2024

Octopus Energy and The Hill Group partner to...

December 13, 2023

UK unemployment rate unexpectedly drops as wage growth...

August 13, 2024

Majority of Britons back increased tax on online...

October 14, 2024

Why The Work Hard/Play Hard Mantra Is Damaging...

August 29, 2024

Tips for the Year Ahead on Managing Your...

February 12, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump wins over lifelong Democrat autoworker with ‘big, beautiful bill’ vehicle loan tax benefit

      June 27, 2025
    • EXCLUSIVE: Trump admin takes action after massive fraud uncovered at agency Dems tried to protect from DOGE

      June 26, 2025
    • FBI investigating Iran strike leaker, Leavitt says: ‘They should be held accountable’

      June 26, 2025
    • SMCI Stock Surges: How to Invest Wisely Now

      June 26, 2025
    • NEW! 5 Significant Additions to Our Professionally-Curated Market Summary Dashboard

      June 26, 2025
    • ‘Presidential incapacity’: Senate Republican seeks paper trail of Biden’s autopen use

      June 26, 2025

    Categories

    • Business (8,316)
    • Investing (2,074)
    • Politics (15,824)
    • Stocks (3,172)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved