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EQS-News: Marley Spoon Group SE / Key word(s): Quarter Results
Marley Spoon Group SE reports Q1 2024 Results
2024-04-30 / 11:34 CET/CEST
The issuer is solely responsible for the content of this announcement.
MARLEY SPOON GROUP REPORTS POSITIVE OPERATING EBITDA IN Q1 2024 WITH EUR81M IN NET REVENUE
("Marley Spoon" or the "Company"), a leading global subscription - based meal kit provider, reported its results for
the quarter ending 31 March 2024 ("Q1 2024").
Highlights:
. Q1 2024 net revenue of EUR80.7m, up nearly 10% quarter - over - quarter;
. Strong margin expansion with Contribution Margin in Q1 2024 of 34.4%, up 335 bps vs. the previous
corresponding period;
. Q1 2024 Operating EBITDA of EUR0.2m, an improvement of EUR6.6m vs. the prior year;
. Operating Cash Flow of EUR2.9m in Q1 2024 and quarter - end cash balance of EUR26.6m;
. Smooth transition to asset - light model in the US.
Marley Spoon's CEO Fabian Siegel, commented: " After a challenging 2023, 2024 started with a stabilization of our
customer base, resulting in quarter - over - quarter net revenue growth. This improvement on our revenue dynamic is a
result of adjustments to our marketing strategy made at the end of Q3 2023, including greater focus on higher quality
customer cohorts and lower discounts. It is great to see the benefits of these adjustments, such as improved customer
retention, materializing. Noticeably, consumer se ntiment also stabilized.
At the same time, the team worked hard on executing our strategic shift to an asset - light model for our US business
which is expected to provide us with a scalable platform at an improved cost structure. The transition has been smooth
with our meal - kit business havin g been transferred in early February. Since then, customer satisfaction has remained
high, and the first cost savings have been realized. At the same time, our US team has begun integrating our newly
acquired bistroMD operations. The combination of strong operational execution globally and our lower - discount
marketing strategy led to a record contribution margin for the quarter, significantly up year - on - year.
The higher contribution margin paired with cost reductions as a result of last year's restructuring programs led to the
first ever profitable first quarter on an Operating EBITDA level, despite the seasonally higher marketing investments.
Overall, we had a good start to the year with heavy lifting on the execution of two transformative strategic
transactions and year - over - year improved financial performance. I want to thank everybody at Marley Spoon for their
teamwork that allowed us to deliver a good start into the year."
Q1 2024 Business Update
Q1 2024 net revenue landed at EUR80.7m, a decline of 9.5% in constant currency year - over - year, but up 10% Q - o - Q
(3% excluding bistroMD). The improved revenue trajectory is driven by an adjusted customer acquisition strategy
focusing on higher quality custome r cohorts at lower discounts, implemented at the end of Q3 2023. Also, the company
is experiencing a stabilization of consumer sentiment, leading to improvements in order frequency. A 14% (in constant
currency) increase Y - o - Y in AOV was primarily driven by customers opting for higher - priced recipes and
incremental Market items. Pricing also accounted for the increase in AOV, though to a lower degree than in the previous
corresponding period (PCP).
The improved marketing performance allowed the Company to reduce its marketing investments in Q1 2024 to 17.1% of net
revenue compared to 22.5% of net revenue in the PCP.
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, Q1 2024 CM was
up 335 bps vs. the PCP to 34.4%, the highest margin on record for the Company. Q1 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, was lower at 40.9% compared to the PCP of 43.7%. This was driven by a conscious decision to provide
more value to customers and re - invest in recipe ingredients.
During Q1 the Company transitioned to an asset - light manufacturing and fulfillment model and effectively moved all US
meal - kit operations to its partner FreshRealm. The transition succeeded smoothly with customer satisfaction remaining
high while first cos t savings in the logistics area were achieved.
G&A decreased approximately 3% vs. the PCP, excluding the impact of one - off costs in connection with the strategic
transactions in Q1 and follow - on costs of the restructuring in 2023. This is a result of the Company's financial
discipline and continued cos t reduction program which is expected to yield incremental process optimizations and
savings through automation and business service centralization over the coming quarters.
The margin improvement and G&A savings led to Marley Spoon's first ever positive Q1 Operating EBITDA of EUR0.2m, an
improvement of EUR6.6m vs. the PCP.
RECONFIRMING 2024 GUIDANCE
Marley Spoon CFO, Jennifer Bernstein, commented, "We are pleased with how we began the year, stabilizing or improving
on our key revenue metrics, delivering our strongest contribution margin on record and continuing to operate with a
leaner cost structure as a result of the cost reduction programs we executed in 2023. This led to the Company's first
profitable Q1 on record on an Operating EBITDA level despite the seasonally higher investment in marketing. Our
financial performance in Q1 allows us to reconfi rm 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 li ves. 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 (Au stria, 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 we ek. 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 identi?able 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 signi?cant 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, ?nancial 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:
Q1 statement / Q1 financial report 2024
Investor presentation with Q1 2024
2024-04-30 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.

Archive at www.eqs-news.com  
Language:     English 
Company:      Marley Spoon Group SE 

9 Rue de Bitbourg
1273 Luxembourg
Luxemburg

E-mail:       ir@marleyspoon.com 
Internet:     www.marleyspoongroup.com 
ISIN:         LU2380748603, LU2380748785 
WKN:          A3C81B 
Listed:       Regulated Market in Frankfurt (General Standard); Regulated Unofficial Market in Berlin, Munich, 

Stuttgart
EQS News ID: 1892849

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1892849 2024-04-30 CET/CEST

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April 30, 2024 05:34 ET (09:34 GMT)