oonpig Group has revealed a jump in sales as it upped the prices of its greetings cards, but said consumers were buying fewer cards and sending cheaper gifts.
The online greetings cards and gifts giant saw its profits decline as it notched up higher costs.
It reported a 5.2% increase in its group revenue in the year to the end of April, compared to the previous year, to £320.1 million from £304.3 million.
It came as the average order value, across its UK website and Netherland’s brand Greetz, jumped from £7.70 to £8.20, which reflects an increase in card prices and fewer promotional discounts, the company said.
The vast majority of sales come from existing rather than new customers, the platform said.
But average selling prices for gifts, like flowers, chocolate, wine and champagne, declined during the year as consumers opted to send cheaper gifts to loved ones amid cost pressures.
Furthermore, order numbers across the online cards brands fell by nearly 15%, which Moonpig said was partly driven by the economic downturn from October following the volatile mini-budget.
It also reflected Royal Mail strikes impacting trading in the lead up to Christmas, with postal workers walking out up and down the country.
We are innovating to differentiate and elevate Moonpig cards with embedded video messages, personalised content and the ability to include a gift experience within the card
Moonpig saw its reported pre-tax profit decline by 12.6%, from £40 million to £34.9 million over the year.
The firm said this was because of higher costs, as it acquired an experiences arm and invested more in technology, and being impacted by higher interest rates.
Revenues in the first half of its new financial year will grow at a low single-digit percentage rate, “in the context of the current macroeconomic environment”, Moonpig said.
Chief executive Nickyl Raithatha said: “We are innovating to differentiate and elevate Moonpig cards with embedded video messages, personalised content and the ability to include a gift experience within the card.
“As the clear online leader in greetings cards, Moonpig Group is well positioned to benefit from the long-term structural market shift to online.”
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