Marley Spoon Sees Margin Improvements Amidst Sales Decline

Marley Spoon Group SE has been updated to a "BUY" recommendation by NuWays AG, despite a challenging Q1. The company saw sales fall by 7.4% to €74.7m due to reduced marketing vouchers and expenses, impacting subscriber numbers. However, the quality of subscribers improved, leading to a 60bps increase in contribution margin to 35%.

The US market is particularly strong, contributing €40m in sales with a 39.1% contribution margin. Europe lags behind with €7m in sales. Despite these challenges, operating EBITDA rose to €0.6m, and the EBIT loss decreased to €3.8m. Operating cash flow improved to €4.6m, resulting in a net cash inflow of €1.7m.

With a guidance for sales declines and margin improvement, Marley Spoon's strategic shift towards a single brand strategy is evident with the discontinuation of its Dinnerly brand in Europe. The company's transformation is marked by an expected launch of ready-to-eat offerings in Europe.