BERLIN & SYDNEY--(BUSINESS WIRE)--Marley Spoon AG (“Marley Spoon” or the “Company” ASX: MMM), a leading global subscription-based meal kit provider, is pleased to share with investors its highlights from the quarter ended 31 December 2022 (“Q4 2022”) and guidance for FY 2023.
Highlights:
- FY 2022 net revenue of €401m, +24% growth year-over-year (YoY) (+16% in constant currency), in line with full year guidance
- Q4 2022 net revenue of €89m, +5% growth year-over-year (nearly flat at -0.5% in constant currency)
- Global Contribution Margin (CM) in Q4 of 32.3%, up 3.5 points vs. the previous quarter and 1.3 points better than the previous corresponding period (PCP). Improvements in all regions vs. Q3
- FY 2022 CM at 28.7%, in-line with guidance
- Positive Q4 Operating EBITDA of €5m1, exceeding guidance, and an improvement of €6m vs. the previous quarter and €9.8m vs. the PCP
- Operating Cash Flow at €(4.7m) and year end cash balance of €19m following completion of Q4 capital raise
Marley Spoon CEO, Fabian Siegel, highlighted, "I am pleased to report that Marley Spoon delivered on expectations and performed to plan. We finished the year strongly with positive Operating EBITDA of €5m in Q4, exceeding our guidance range. The performance was driven by strong margin expansion across all regions and the successful execution of our measured growth strategy.
I would like to thank all our team members for this great performance. We delivered on our plan and achieved our full year guidance in a challenging year that was impacted by supply chain disruptions, inflationary pressures, severe weather events and muted consumer confidence. Despite these headwinds we ended the year with our highest contribution margin globally and with a profitable Q4 and H2 2022.
Our 2023 outlook is cautiously optimistic. We see consumer demand softening due to continued inflation and economic challenges, which are eroding consumer purchasing power and confidence. However, we have significant scope to grow as our category transitions online and our meal kit offer is superior to supermarkets. We will leverage our multi-brand portfolio while continuing to focus on increased choice, personalization and offerings for budget-conscious consumers.
The Company’s planned sequential reduction in marketing spend throughout the year and the Contribution Margin expansion led to a record Operating EBITDA result that was significantly improved versus the prior year and the prior quarter, landing at €5m, excluding one-time charges from severance payments and historical sales tax corrections in the US, and €(8.8m) for the FY. This translated to a Q4 2022 net income loss of €(2.5m), or €(39.9m) for the full year.
2023 OUTLOOK AND GUIDANCE
Marley Spoon CFO, Jennifer Bernstein, commented, “Despite several headwinds in 2022, we delivered on our plan and met our guidance expectations. We grew the business, maintained margins vs. 2021, exited the year on a very strong margin trajectory and significantly improved profitability year-over-year. Looking into 2023, we are cautiously optimistic. We anticipate a potential impact on consumer behavior from inflation and are mindful of consumers’ budget concerns. We have recently launched “Super Saver” recipes in the US as part of our initiative to offer 100 weekly recipes to customers and will launch them later this quarter in the EU. We will also continue leveraging our multi-brand portfolio while highlighting that meal kits offer more cost control than shopping in the supermarket. For full year 2023, we are guiding to single digit net revenue growth vs. the PCP while planning to deliver margin expansion driven by improved operational capabilities, despite ongoing inflation. Our continued focus on operating in a disciplined way, paired with expanded margin and conservative growth, gives us the confidence to guide to a positive Operating EBITDA for 2023 on a full year basis. This should lead to positive operating cash flow which will help us as we carefully manage within our lean balance sheet capacity.”
2023 Guidance:
- Single digit net revenue growth vs. FY 2022 in constant currency
- Contribution Margin expansion to between 30% - 32%
- Full year positive Operating EBITDA
For the Q4 and full year report and preliminary results visit https://tinyurl.com/muatbzpb. The Q4 2022 and full year presentation of preliminary results can be found via https://tinyurl.com/3hvcepf6.
About Marley Spoon
Marley Spoon (MMM:ASX, GICS: Internet & Direct Marketing Retail) is a global direct-to-consumer brand company that is solving everyday recurring problems in delightful and sustainable ways. Founded in 2014, Marley Spoon currently operates in three primary regions: Australia, United States and Europe (Austria, Belgium, Germany, Denmark, Sweden and the Netherlands).
With Marley Spoon’s meal-kits, you decide what to eat, when to eat, and leave behind the hassle of grocery shopping. To help make weeknights easier and dinners more delicious, our meal kits contain step-by-step recipes and pre-portioned seasonal ingredients to cook better, healthy meals for your loved ones.
As consumer behaviour moves towards valuing the convenience aspect of online ordering, Marley Spoon’s global mission through its various brands, such as Marley Spoon, Martha Stewart & Marley Spoon, Dinnerly, and Chefgood is to help millions of people to enjoy easier, smarter and more sustainable lives.
12022 Operating EBITDA excludes severance payments in the amount of €0.3m as well as a one-time sales tax charge in the US of €0.1m
