Marley Spoon Group Receives Mixed Financial Guidance for 2024 from NuWays AG

Marley Spoon Group ("MSG"), a leading name in the meal kit market, has had its financial outlook for the year 2024 analyzed by NuWays AG, resulting in a mixed but cautiously optimistic perspective. According to the report, MSG is expected to experience a growth in sales by a single-digit percentage, specifically projected at 9% year-over-year. This growth is significantly attributed to the group's recent acquisition of bistroMD, an entity operating in the ready-to-eat sector, poised to increase MSG's overall revenue with a 10% year-over-year growth, valued at €39 million.

The analysis highlights a forecasted decline in the meal-kit market, expecting MSG to see a single-digit percentage decrease in demand. Factors such as cautious consumer behavior and a normalization in subscriber numbers post-COVID are cited as main contributors to this outlook. Nonetheless, bistroMD's integration into MSG's portfolio is seen as a strategic move that aligns with current consumer trends towards health, convenience, and weight loss, potentially offsetting declines in the meal-kit segment.

Operational efficiencies and cost reduction strategies, including a rectified voucher strategy and streamlined general and administrative setups, are expected to stabilize MSG's operating EBITDA to a positive mid-single-digit figure. Despite challenges anticipated in the meal kit market in 2024, NuWays AG maintains a BUY recommendation for Marley Spoon Group, albeit reducing the target price from €8.00 to €7.00 based on their DCF analysis.