Marley Spoon reports soft consumer demand, revises guidance

Subscription-based meal kit provider Marley Spoon plans to revise its full-year revenue guidance after sales plummeted on soft consumer demand.

For the quarter to June 30, net revenue fell 21 per cent to €86 million (A$141.31 million) while operating EBITDA slumped 161 per cent to A$3.94 million.

In Australia, net revenue grew marginally, up 1 per cent to $59.32 million while the US market reported a 9.1 per cent increase to $67.37 million.

In Europe, net revenue grew 16 per cent to $14.62 million however high inflation and interest rates have put pressure on the company’s conversion and early retention rates in the region.

During the quarter, the average order volume increased by 7 per cent benefiting from several revenue-enhancing activities along with price increases carried out last year.

Marley Spoon CEO, Fabian Siegel, said the results are “consistent” with the first quarter as consumer challenges coupled with price sensitivity and low consumer confidence impacted acquisition volumes and order frequency in the US and Europe.

Reflecting on the sentiments, CFO Jennifer Bernstein said persisting economic concerns have led to lower order frequency and a subsequent sales decline.

“We do see an improved trajectory throughout the second quarter and therefore anticipate more favourable spending patterns in the second half of the year.”

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