EQS-News

Marley Spoon Group SE reports Q1 2024 Results - Seite 2

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 €80.7m, 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.