Marley Spoon Group SE (“Marley Spoon” or the “Company”), a leading global subscription-based meal kit provider, reported its results for the quarter ending 30 June 2024 (“Q2 2024”). 

Highlights:
● Net revenue of €86.8m, up 0.9% year-over-year (YoY);
● Strong margin expansion to 34.6%, up 270 bps YoY;
● Operating EBITDA of €1.1m, down €1.4m YoY;
● Operating Cash Flow of €(5.0)m in Q2 2024 and quarter-end cash balance of €16.6m;
● The Company reaffirms full year 2024 guidance

Marley Spoon’s CEO Daniel Raab, commented: “We are pleased to see an acceleration in revenue growth vs. Q1 2024 driven by both our acquisition of bistroMD as well as positive trends in retention and LTV for meal kits, stemming from a focus on higher quality customer cohorts and lower discounts. These improvements in customer lifetime value enabled a disciplined increase in spend to deliver future growth.
The result of the lower marketing discounts paired with continued efficient operational execution led to another strong contribution margin expansion year-over-year in the second quarter. This, combined with cost reductions as a result of last year’s restructuring programs, led to another positive Operating EBITDA quarter for the third consecutive quarter. The careful re-investment in marketing can be seen as an investment in future growth at attractive customer economics. We want to thank our teams in all regions for continuing to deliver on our plan enabling us to confirm our full year guidance.”
 

Q2 2024 Business Update

MSG Q2 2024 net revenue landed at €86.8, 0.9% growth year - over - year. In addition to benefiting from the addition of bistroMD to the Company’s portfolio, meal kits saw improvement in key topline performance indicators such as revenue retention and lifetime value, driven by an adjusted customer acquisition strategy focusing on higher quality customer cohorts at lower discounts, implemented at the end of Q3 2023. The Company also saw continued improvements in order frequency, which is up 5% in the quarter vs. the prior year. A 15% increase YoY in AOV (in constant currency) was driven by the addition of bistroMD as well as more accretive offerings, with pricing contributing minimally to the improvement.

Marley Spoon achieved strong Contribution Margin (CM) expansion in the quarter, driven by its focus on continuous improvement and cost management, as well as the lower level of marketing discounts given. As a result, Q2 2024 CM was up 270 bps YoY to 34.6% . Q2 2024 Operating Contribution Margin (“Operating CM”), defined as CM excluding the impacts of marketing vouchers and fixed costs such as expenses relating to site leases, contracted 170 bps YoY to 40.3% driven by a conscious decision to provide more val ue to customers and re - invest in recipe ingredients.

In marketing, the Company saw better unit economics and higher repurchase rates due to the reduced discounting offered and subsequent higher - quality cohorts, allowing the Company to carefully increase media investments, albeit in an inflationary media environment. This led to an increase in marketing spend of 18.4% YoY. The media investments increased more than proportionally in the US region and in the Ready - to - Heat businesses, reflecting the Company’s ambition to grow strategically in these areas.

G&A decreased 11.8% YoY as a result of the Company’s financial discipline and last year’s cost reduction programs.

The margin improvement and G&A savings offset the increased marketing investments to deliver positive Operating EBITDA in the quarter of €1.1m . However, due to lapping the add - back of high one - off transaction costs last year, Operating EBITDA declined vs. the prior year by €1.4m. Correcting for this, Operating EBITDA would have increase d by approximately €2m.

Reconfirming 2024 Guidance 
Marley Spoon CFO, Jennifer Bernstein, commented, “We are pleased with performance in the first half of the year, stabilizing or improving on our key revenue metrics, delivering strong contribution margin expansion and continuing to operate with a leaner cost structure as a result of the cost reduction programs we executed in 2023. This led to another profitable quarter on an Operating EBITDA level. Our financial performance in Q2 allows us to reconfirm our guidance for the full year 2024.”
2024 Guidance:
● Single-digit net revenue growth vs. FY 2023 in constant currency
● Contribution Margin in line with the prior year
● Full-year mid-single-digit positive Operating EBITDA

 

About Marley Spoon

Marley Spoon Group SE, is a global direct - to - consumer (DTC) meal - kit company. Our Vision is to “Build a better everyday, just for you, just right”. We started Marley Spoon in 2014 to help our customers to cook for their families and deal with their busy lives. We also felt there should be a more sustainable way to cook at home, reducing food waste that traditional supermarket supply chains generate. Marley Spoon currently operates various brands in three regions: Australia, the United States, and Europe (Austria, Belgium, Germany, and the Netherlands). Our meal - kit brands, Marley Spoon, Martha Stewart & Marley Spoon, and Dinnerly, bring pre - portioned fresh ingredients with tasty and simple recipes and other eating solutions reliably to our customers every week. Our customers just decide what to eat, when to eat, and leave behind the hassle of grocery shopping. Chefgood and bistroMD are our direct - to - consumer ready - to - heat (RTH) services that offer tasty, high - quality, healthy, and nutritious RTH meals and eating solutions for our wellness and health - focused customers.

 

Disclaimer

This announcement constitutes neither an offer to sell nor a solicitation to buy securities. Certain statements contained in this release may constitute “forward - looking statements” that involve a number of risks and uncertainties. Forward - looking statemen ts are generally identifiable by the use of the words “may”, “will”, “should”, “plan”, “expect”, “anticipate”, “estimate”, “believe”, “intend”, “project”, “goal” or “target” or the negative of these words or other variations on these words or comparable ter minology. Forward - looking statements are based on assumptions, forecasts, estimates, projections, opinions or plans that are inherently subject to significant risks, as well as uncertainties and contingencies that are subject to change. No representation is made or will be made by Marley Spoon Group SE or any of their respective affiliates that any forward - looking statement will be achieved or will prove to be correct. The actual future business, financial position, results of operations and prospects may dif fer materially from those projected or forecast in the forward - looking statements. Neither Marley Spoon Group SE nor any of their respective affiliates assume any obligation to update, and do not expect to publicly update, or publicly revise, any forward - l ooking statements or other information contained in this release, whether as a result of new information, future events or otherwise, except as otherwise required by law.

Please see here for further details:
Q2 statement 2024
Investor presentation with Q2 2024