Insights

Marley Spoon (ASX:MMM) share price in a trading halt after explosive Q3 growth

The Marley Spoon AG (ASX:MMM) share price is in a trading halt after delivering explosive third quarter revenue growth…
The post Marley Spoon (ASX:MMM) share price in a trading halt after explosive Q3 growth appeared first on Motley Fool Australia. –

paper bag filled with fresh food representing marley spoon share price

The Marley Spoon AG (ASX: MMM) share price won’t be going anywhere on Friday after the subscription-based meal kit provider requested a trading halt following the release of its third quarter update.

What happened in the third quarter?

Marley Spoon’s positive form continued in the third quarter, with very strong growth being delivered across all geographic regions.

Management notes that it experienced continued strong demand for its meal-kits from new and existing customers, leading to positive growth momentum and favourable customer acquisition costs,

According to the release, for the three months ended 30 September, Marley Spoon achieved revenue of 69.3 million euros, up 109% on the prior corresponding period.

The company’s US operations were strongest, delivering revenue of 34.2 million euros, up 163% in constant currency terms. This was driven by strong growth in Martha & Marley Spoon and Dinnerly brands. It achieved third quarter earnings before interest, tax, depreciation and amortisation (EBITDA) of 0.7 million euros.

Growth was also very strong in Australia, with revenue rising 84% to 25.3 million euros. Operating EBITDA was 3.4 million euros for the quarter.

Finally, in Europe, the company recorded an 83% increase in revenue to 9.8 million euros. Though, unlike the US and Australia, these operations are not yet profitable and posted an EBITDA loss of 0.6 million euros.

Marley Spoon ended the quarter with 362,000 active customers, up 86% year on year. However, this is just a 3% increase quarter on quarter. Also, on average it generated 4.3 orders per customer in the quarter. While this was up from 3.9 orders per customer in the prior corresponding period, it was down from 4.4 in the second quarter.

Looking ahead, Marley Spoon has narrowed its FY 2020 revenue guidance range. It now expects growth of between 90% to 100% year on year, compared to 80% to 100% previously.

Why are Marley Spoon shares in a trading halt?

Marley Spoon requested a trading halt whilst it undertakes a A$56 million fully underwritten placement.

The company is raising the funds at $3.22 per share, which represents a 7.7% discount to its last close price.

Management commented: “Given the continued traction in online meal kit adoption and strong recent business performance, Marley Spoon considers it appropriate to improve its balance sheet and access additional growth capital. With additional balance sheet flexibility, Marley Spoon will be well positioned to accelerate its global growth strategy and capitalise on the opportunities available in its core markets.”

Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

Find out the names of our 3 Post COVID Stocks – For FREE!

*Returns as of 6/8/2020

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Marley Spoon (ASX:MMM) share price in a trading halt after explosive Q3 growth appeared first on Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!