Marley Spoon sinks on mixed results

Marley Spoon sunk 22% following the release of its quarterly update on Friday, despite reporting further growth in all regions.

The healthy meal kit provider fed investors mixed results as revenues grew 10% on the prior corresponding period at $129.3 million (€80.6m), after customer numbers rose 37% year-over-year.

Their European sector showed the biggest improvements with revenue soaring 43% compared to the same time last year, while Australian and American regions both grew at 7% for the quarter.

Marley attributed their single-digit growth in America due to labour shortages and supply chain bottlenecks. While in its Sydney operations, outgoings were realised due to the move to a bigger fulfilment centre along with establishing a new one in Perth.

Marketing spend and talent recruitment led to a half-year operating loss of $23.8 million or $14.6 million for the quarter.

Looking ahead, the company downgraded its contribution margin guidance to 27% from 28% despite remaining optimistic that annual net revenue will be between 30-35% for the year.