Marley Spoon Group SE's Strategic Shift Amid Revenue Challenges

Marley Spoon Group SE, under scrutiny by NuWays AG, shows a strategic pivot towards profitability despite facing revenue challenges. The company reported a Q2 EBIT of €1.6 million, marking its strongest quarterly performance to date, despite a 21.6% annual decrease in net sales. This performance extends its streak to seven quarters of positive operating EBITDA.

The company's strategic pullback in marketing expenses and the divestment of Chefgood in Australia contribute to the revenue decline. However, these decisions align with the management's focus on profitability. Tighter cost controls and supply chain efficiency have improved the contribution margin to 37.6% and the operating EBITDA margin to 7.8%.

Regionally, the US remains Marley Spoon's largest market, with revenues down 24.6% but significant margin improvements. Similarly, Australia reports a 15.5% operating EBITDA margin, while Europe turns profitable with a 5.1% margin. The company, however, continues to face cash flow constraints.