Meal kit provider Marley Spoon says its Australian operations turned a profit in the second quarter and will be boosted by its deal with Woolworths despite an overall loss in earnings.
The company, which started in Germany in 2014 and first listed on the ASX in July last year, said in unaudited results that it recorded a loss of about 5 million euros ($A8.11 million) in the three months to June 30 compared with a loss of 8 million euros in the previous corresponding period.
“Reaching operating EBITDA profitability in Australia in Q2 for the first time and kicking off our strategic partnership with Woolworths in early Q3 are great achievements by our team and a testament to the long-term viability of our business model,” chief executive Fabian Siegel said.
Marley Spoon, which delivers boxes containing recipes and fresh ingredients, said it received 18 million euros in funding as part of its five-year deal with the grocery giant.
“The partnership gives us access to capital, access to growth and access to synergies,” Fabian Siegel CEO of Marley Spoon previously told Inside Retail.
“Woolworths has the understanding of a lot of households in Australia and has the trust of a lot of households in Australia and that can help us to grow both Dinnerly and Marley Spoon but we can also [be] more efficient by looking for synergies on the sourcing and logistics side. “
“Woolworths as a shareholder of course would benefit from it as well… also learning how to build an online direct to consumer subscription service… [Woolworths is] quite interested in learning about that.”
Woolworths will gain valuable insights from Marley Spoon’s manufacturing, distribution and market experience in home-delivered meal kits as grocery spending shifts to online.
Brad Banducci, CEO of Woolworths Group said the partnership aligns with the supermarket’s goal of meeting customers’ needs for healthy and convenient meal solutions.
“Marley Spoon has demonstrated it has a customer focused, innovative and entrepreneurial culture and we are excited to partner with them,” he said in a statement.
