Marley Spoon Group SE Exhibits Recovery and Confirms FY'24 Guidance According to NuWays AG Report

Marley Spoon Group SE released its Q1'24 results showing a -12% year-over-year sales decline to €80.7 million, while the subscriber count decreased by 23% year-over-year to 194,000. However, the report by NuWays AG highlighted signs of stabilization and recovery in various business metrics. Q1'24 showed a slight increase in the subscriber base and improvements in order frequency and basket size. These positives were primarily attributed to an enhanced quality of subscriber retention strategies initiated in the second half of the previous year and a stabilization in consumer sentiment.

Despite decreasing sales, Marley Spoon improved its contribution margin notably to 34.4%, benefiting from reduced promotional costs and partnerships that enhanced fulfillment efficiency. These factors contributed to a healthy operating EBITDA margin growth. Based on these improvements and stable consumer trends, Marley Spoon has confirmed its financial guidance for FY'24, expecting sales growth in single digits and continual margin performance.

Analysts from NuWays AG have reaffirmed their 'Buy' recommendation for Marley Spoon with a target price of €7.00, anticipating that the company is well-positioned to benefit from the recovering market and its strategic adjustments aimed at achieving group profitability.