Moonpig ups guidance after Omicron boosts sales

Moonpig upgraded its revenue outlook for the current financial year after sales were boosted by consumer behaviour during the Omicron strain of Covid-19.

The online greeting card and gift platform said revenue in the year to the end of April would be about £300m - up from earlier guidance of £270m-£285m. The outlook for underlying revenue is unchanged at about £265m.

The FTSE 250 group said trading was supported by consumers using its services in late December and January when trade at physical stores was dampened by the arrival of the Omicron variant. Trading remained strong in February and March, including Mother's Day in the UK, it said.

Nickyl Raithatha, Moonpig's chief executive, said: "Today's update reflects continued strong trading performance post-lockdowns, including a very successful UK Mother's 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."

Moonpig said margins were resilient and the company reiterated its medium-term target for an adjusted earnings margin of 24-25%.