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CardFactory (LS:CARD), the UK’s leading retailer of greeting cards and celebration essentials, has announced its interim results for the first half of 2025, showcasing significant growth and strategic expansion.
Financial and Business Performance
For the six months ending July 31, 2024, the Group posted revenue of £233.8 million, marking a 5.9% increase compared to the same period in H1 2024.
The company’s like-for-like (LFL) sales also saw strong performance:
- Overall LFL growth of 3.7%, driven by continued development of the store estate and CardFactory’s focus on quality and value.
- Gifts and celebration essentials recorded an impressive 6.0% LFL growth, as new product categories expanded.
- Card sales grew by 1.1% LFL, reinforcing the company’s position as a go-to destination for celebrations.
- Online sales on CardFactory.co.uk rose by 8.8%, continuing the upward momentum from the second half of FY24.
Adjusted Profit and Strategic Investments
Adjusted Profit Before Tax (PBT) came in at £14.5 million, a decrease of £7.6 million year-on-year. The dip in profitability was attributed to increased costs, including the National Living Wage and freight inflation. However, the company expects that strategic investments will boost profitability in the second half of FY25.
Balance Sheet and Dividends
Net debt increased by £3.0 million, largely due to a £15.5 million dividend payment related to FY24. CardFactory has reinstated its interim dividend of 1.2p per share, with plans to maintain a dividend cover of around 3.0x over the full year.
Strategic Progress and Global Expansion
CardFactory continued to build on its growth strategy through key partnerships:
- The company signed a multi-year agreement with Aldi to be the exclusive greeting card supplier across its UK and Ireland stores.
- A nationwide wholesale partnership in the U.S. has been secured, with products set to roll out before Christmas.
- In Australia, CardFactory is in advanced discussions to renew and expand its partnership with The Reject Shop.
- In September 2024, the company completed the acquisition of Garlanna, a greetings card and gift bag wholesaler in Ireland, further strengthening its international footprint.
Outlook
Looking ahead, CardFactory is well-prepared for the key Christmas trading period, focusing on quality and value across its card, gift, and celebration ranges.
For the second half of FY25, margin growth will be driven by seasonal sales, productivity improvements, and cost management. Despite challenges such as inflation, the company has maintained its full-year expectations and remains confident in meeting its FY27 targets.
