Raithatha has held the top job at the cards and gifting giant since June 2018. His notice period is 12 months and he will continue to lead the group until a new CEO is appointed, as well as ensuring a smooth leadership transition.
Raithatha said that until he handed over to a successor, he would remain focused on executing Moonpig’s strategic priorities and long-term value for shareholders.
He commented: “After seven years as CEO, I am proud to leave the group in a strong position as the clear leading platform in cards and gifts across both the UK and the Netherlands, with a loyal and growing customer base, driven by our innovations in technology, data and AI.
“It has been a privilege to work alongside such a talented group of people. Together, we have grown the business, listed on the London Stock Exchange, and expanded into new markets. As today's full-year results show, the business is in excellent shape, with strong momentum, an experienced senior leadership team, and significant growth potential.”
Moonpig chair Kate Swann thanked Raithatha for his service and contribution, and said the business was well-prepared and had a strong leadership team in place.
“Under his leadership, the group has reinforced its position as the category-defining online platform for greeting cards and gifting,” she said.
The group’s value soared to £1.2bn at its flotation in February 2021, but has fallen back since and is currently at £726.7m.
Moonpig’s share price fell by more than 10% in early trading following the announcement, which also coincided with the group’s year-end results.
Raithatha is leaving amid a mixed picture in the group’s performance.
The core Moonpig brand grew at 8.6% year-on-year, but sales at continental wing Greetz fell by 4.7%, or 2.4% at constant currency.
Sales at the problematic Experiences wing slumped by 19.3%. Moonpig Group has made a £56.7m non-cash goodwill impairment charge against the wing. It said it was “taking proactive steps to reposition the Experiences proposition” amid a challenging market environment, and described progress as “encouraging”, with the re-platforming of the operation now complete.
Moonpig expanded into gift experiences three years ago when it bought Smartbox Group in a £124m cash deal.
The prior year sales figure at Experiences had also been boosted by excess non-redemption revenue on expired vouchers that were issued during the Covid pandemic.
Overall group sales in the year to 30 April were up 2.6% at £350.1m, while adjusted EBITDA was up 1.6% at £96.8m.
Gross margin nudged up to 59.6% (2024: 59.4%).
Statutory pre-tax profit fell from £46.4m to £3m due to the Experiences write-down. Adjusted pre-tax profit was up 16% at £67.5m.
Moonpig said it continued to push technology innovations and the use of AI.
It now has 101m customer occasion reminders, up from 90m last year.
Moonpig Plus and Greetz Plus subscriptions grew to 920,000 members, up 70%.
Raithatha said he was pleased to report a year of strong earnings per share growth and high free cash flow. The group continues to target double-digit revenue growth in the medium term.
He said: “We have maintained strong trading momentum since our year-end, with Moonpig delivering its biggest ever Father's Day, exceeding sales at the peak of lockdown in 2020. Looking ahead, Moonpig Group's clear market leadership puts us in a strong position to capitalise on the long-term shift to online.”
Moonpig recently celebrated 25 years in business, and reached the landmark of half a billion items sold since it was founded.Control of in-house fulfilment has enabled investment to drive efficiency improvements.
In September last year the group insourced UK balloon fulfilment to improve gross margin.
In the current financial year its plans include investing in automated parcel sortation, which is “an enabler for broadening our range of gift delivery options”, and is adding specialist printing kit that will allow the group to insource giant card fabrication.
The group’s share price was at 219.50p at the time of writing (52-week high: 277.50p, low: 154.20p).
