Meal kit service Marley Spoon reports $31m loss but says prospectus forecast is on track
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Dinner delivery service Marley Spoon has posted a half-year loss of $30.9 million but says it’s on track to hit its prospectus forecast for 2018.
The company’s half-year loss of €19.4 million was attributed to higher marketing and financing expenses.
But revenue grew 99 per cent over the same period, or 86 per cent in Euro terms to €39.5 million.
Australia’s taste for home-delivered meal kits was one of the reasons, with revenue generated by Aussies surging by 140 per cent to $23.7 million in the first half.
Fabian Siegel, Marley Spoon CEO, told Stockhead this morning that marketing costs grew as the customer base grew.
“If you look at our contribution margins, the marketing expenses for every new customer acquires is being offset. Operating EBITDA as a percentage of sales improved from -52 per cent in the first six months of 2017 to -36 per cent in the comparable period of 2018,” he said.
“Overall, we’re very happy with the business. Every customer we acquire we are getting the money back in a short period of time.
“The business model is not only good for making cooking easier for families, but we’re moving continuously towards profit.”
Siegel declined to estimate a date for profitability but said the company was well on track to hit the revenue guidance of €93 million it outlined in its prospectus.
“The third quarter is normally a strong quarter and we are ahead in terms of customer acquisitions which has set us up for a strong second half,” he said.
“It might lead us to exceed the revenue we forecast. It’s early days and we need to be careful but it certainly reconfirms the guidance.”
Global customers also grew 112 per cent to 125,000 by the end of June.