Meal kit company Marley Spoon recorded a pandemic-driven global surge in demand from mid-March which saw the company achieve positive operating cash flow globally for the first time.
Its Australian market had the strongest performance, with sales jumping 70 per cent, and active customers increasing 61 per cent to 81,000.
This was boosted by its partnership with Woolworths. In June last year, Woolworths invested $30 million in Marley Spoon and a nine per cent share in the company (Food & Drink Business, 09/08/2018)
Globally Marley Spoon had a 56 per cent (€42.8 million, AU$72 million) revenue increase on the prior corresponding period (PCP). From 30 March to 19 April it doubled revenue on the PCP to $37 million.
The Australian business delivered a record result in Q1 with revenues of $24.9 million (€14.8 million), with both of the company’s brands contributing, and a CM of 38 per cent, which is an increase of six points on the PCP. The increase was achieved despite challenges due to the bush fires early in the quarter.
Marley Spoon CEO Fabian Siegel said: “Q1 2020 saw strong performance for both growth as well as operational efficiency even before the sharp uplift due to the COVID-19 crisis. All regions showed double digit growth in Q1 and we reached a record contribution margin. This led to material operating EBITDA and cashflow improvements year over year.”
Siegel said the pandemic drove a surge in demand with customers staying home and looking for reliable, safe and nutritious ways to feed their families. MS had been able to operate as an essential service and “rose to the occasion”,
“This has led to record revenue and more than 100 per cent growth in April, paired with very attractive customer acquisition costs. This new environment is a strong tailwind for our business, and as a result, our path to profitability is being accelerated.”
Revenue growth due to active customer growth due to strong retention and customer loyalty.
Australia snapshot:
- Q1-20 revenue up +56 per cent compared to PCP, or 70 per cent excluding FX impacts
- CM improved to 38 per cent; operating CM reached 45 per cent, up 7 points YOY
- break-even on operating EBITDA basis again, despite almost doubling marketing spend vs Q4 2019; thereby positive over the last twelve months.
Total active customers in Australia rose 26 per cent to 240,000, orders rose 34 per cent to 945,000, and the average order value was up nine per cent.
