Marley Spoon (ASX:MMM) share price on watch after delivering rapid revenue growth

The Marley Spoon AG (ASX:MMM) share price will be on watch on Friday following the release of a strong full year results this afternoon…
The post Marley Spoon (ASX:MMM) share price on watch after delivering rapid revenue growth appeared first on The Motley Fool Australia. –

Marley Spoon share price

The Marley Spoon AG (ASX: MMM) share price will be one to watch on Friday.

This follows the release of the subscription-based meal kit provider’s full year results after the market close.

How did Marley Spoon perform in FY 2020?

For the 12 months ended 31 December, Marley Spoon reported a 96% increase in revenue to 254 million euros.

While this was driven by strong revenue growth across all geographies, the star of the show was its US business. It reported a 126% increase in revenue to 127 million euros thanks to growth across all brands.

Positively, despite operational headwinds related to the COVID-19 pandemic, the US business was able to increase its contribution margin by 6 percentage points. This led to the business turning profitable on an operating EBITDA basis.

Supporting its growth was its Australia business, which delivered a 76% increase in revenue to 86 million euros, and its Europe business, which grew revenue by 66% to 41 million euros.

This ultimately led to the company reporting a contribution margin of 26% and an operating loss of 0.5 million euros for FY 2020. The latter was a big improvement on its 29.8 million operating loss a year earlier. Furthermore, the company achieved an operating profit of 1.5 million euros for the second half, which bodes well for FY 2021.

At the end of the period, Marley Spoon had 227,431 subscribers. This was up 83% on FY 2019’s subscriber numbers.

Management commentary

Marley Spoon’s CEO, Fabian Siegel, commented: “2020 was a significant year for Marley Spoon. We doubled revenue in a challenging operational environment and invested in the foundations for future growth.”

“We continue to see opportunities to invest in new customer growth at attractive unit economics. These marketing investments, combined with our investments in expanding manufacturing capacity, developing our digital technology platform, and further strengthening our leadership team, position us well for the coming years. We are encouraged by the continued adoption of online grocery shopping by consumers, a trend we are well-poised to capitalise on given the strength of our direct-to-consumer engagement capabilities.”


Due to the continued strong global growth in online meal kit adoption and retention of customers acquired in FY 2020, Marley Spoon expects to grow revenue between 25% to 30% in FY 2021.

It is also expecting its contribution margin to improve to between 30% to 31%.

Mr Siegel noted: “We have started FY2021 strong in all markets, with the US continuing to be our biggest growth engine. We demonstrated improved unit economics in FY2020 which reflects the accelerated shift to online shopping as a result of the pandemic. This trend is continuing, and we see opportunities to continue to attract new customers at a faster pace.”

Where to invest $1,000 right 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.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

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. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Marley Spoon (ASX:MMM) share price on watch after delivering rapid revenue growth appeared first on The 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!