Marley Spoon Group Se · XETR:MS1
Marley Spoon — Q2 2023 Earnings Presentation
33 slides from Marley Spoon's earnings presentation, Jul 27, 2023
Slide 1: Q2 2023 Results Presentation
Q2 2023 Results Presentation July 27, 2023 This announcement has been authorized for release to ASX by the Board of Directors of Marley Spoon SE 1
Slide 2: Introduction
Introduction FABIAN SIEGEL CEO, Founder, Management Board 2
Slide 3: Marley Spoon offers customers sustainable cooking solutions
Marley Spoon offers customers sustainable cooking solutions Solving Everyday Problems Building a better VISION everyday, just for you, just right You decide Our chefs what you want design to cook and great when recipes Bringing delightful, market-fresh and MISSION easy cooking back We source You sim
Slide 4: Despite a recent sales slowdown, Marley Spoon has realized scale and improved Operating EBITDA
Despite a recent sales slowdown, Marley Spoon has realized scale and improved Operating EBITDA over time Revenue (EUR M) 109 103 100 89 91 85 86 77 81 79 73 69 69 43 32 33 35 29 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2019 2020 2021 2022 2023 Operating EBITDA Margin* 6.0% 1.7% 5.5% 2.8
Slide 5: H1 2023 was marked by margin expansion and improved Op. EBITDA
H1 2023 was marked by margin expansion and improved Op. EBITDA, helping offset revenue declines; in H2 we remain focused on customer retention and cost discipline Strong operational results H1 despite soft topline H2 Drive revenue with continued STRATEGY cost discipline environment • Revenue decreas
Slide 6: Long-term, loyal customers with high order frequency
While our business continues to benefit from long-term, loyal customers with high order frequency… Revenue Breakdown Global Net Revenue Retention by Order Frequency (Quarterly Average) 100% 80% 45% 30+ Orders 6-30+ = 60% ~79% of Net Revenue, +3pts vs. PCP 40% 23% 11-30 20% 11% 6-10 0% 17% 21st 2nd 1
Slide 7: Recent Active Subscriber growth has been challenged
…recent Active Subscriber growth has been challenged due to marketing spend reductions and new subscriber quality in H1 2023 Active Subscribers (k) • H2 2022 marketing down 40% YoY • H1 2023 marketing down 19% YoY 309 296 272 268 275 265 252 249 250 233 235 220 199 131 136 Q4-19 Q1-20 Q2-20 Q3-20 Q4
Slide 8: New offerings helped increase Average Order Value in Q2
Continued focus on providing new offerings to the customer helped increase Average Order Value in Q2 Meals per Order Average Order Value € 61.6 € 54.8 8.7 9.1 12% (constant currency) 4% Q2 2022 Q2 2023 Q2 2022 Q2 2023 • Increase in meals per order across all regions (AUS +4%, US +3%, EU+1%) helping
Slide 9: Q2 / H1 2023 Financial Overview
Q2 / H1 2023 Financial Overview Q2 2022 Q2 2023 H1 2022 H1 2023 Net Revenue (€m) 109.2 86.0 211.8 177.4 Net Revenue Growth % vs. PCP* 35% / 25% (21)% / (17)% 34% / 26% (16)% / (14)% Contribution Margin (CM) % 27.2% 31.8% 27.2% 31.4% Operating CM % 36.7% 42.0% 37.2% 42.9% Operating EBITDA (€m)** (3.0
Slide 10: Finance
Finance JENNIFER BERNSTEIN Chief Financial Officer, Management Board 10
Slide 11: AOV could not offset revenue deceleration
Though customers are adding higher value items to their boxes, AOV could not offset revenue deceleration due to lower marketing spend and lower order frequency Net Revenue H1 2023 vs. PY (EUR m) (16)% (14)% in constant currency 11
Slide 12: Continued operational improvement is balancing the net revenue decline
Continued operational improvement is balancing the net revenue decline Contribution Margin % over time Scale leverage External labor and Extreme Operational achieved supply chain issues inflation Efficiencies 31% 30% 30% 30% 28% 27% 27% 26% 24% H1 2019 H2 2019 H1 2020 H2 2020 H1 2021 H2 2021 H1 2022
Slide 13: All areas of the business are contributing to the margin expansion
All areas of the business are contributing to the margin expansion H1 2023 Contribution Margin Operational Improvements Customer Credits Food Fewer substitutions, Margin-based menu planning more on-time delivery and improved market conditions Packaging • Global Contribution Margin in H1 2023 of 31.4
Slide 14: Our increasing scale is driving marketing efficiency over time
Our increasing scale is driving marketing efficiency over time… Marketing as % of NR 33.3% 31.6% 29.4% 23.8% Outlier year with the 23.7% pandemic driving unusually low level of spend 21.5% 20.4% 18.4% 19.2% 18.6% 13.0% H1 2018 H2 2018 H1 2019 H2 2019 H1 2020 H2 2020 H1 2021 H2 2021 H1 2022 H2 2022 H
Slide 15: G&A investment and cost reduction focus
…and drove up G&A as we invested in infrastructure to keep pace with our growth; we now focus on finding the most efficient organizational setup G&A (EUR M) Fixed costs One-time charges* 40.6 40.3 38.4 0.8 0.9 5.6 33.9 0.3 30.1 23.4 39.8 37.5 33.6 34.8 18.9 (13%) 16.3 16.5 13.8 11.5 H1 2018 H2 2018
Slide 16: Our business continues to trend positively despite the topline slowdown
Our business continues to trend positively despite the topline slowdown Revenue (EUR M) Contribution Margin and CM% CM (EUR m) 32% 32% 35% 109 40 30% 31% 31% 103 CM % 29% 100 29% 29% 29% 89 91 86 28% 28% 28% 27%27% 30% 85 27% 73 69 69 77 81 79 30 29 29 28 24%24% 23% 26 28 27 25% 20 22 22 21 22 43 19
Slide 17: Q2 / H1 regional performance: US
Q2 / H1 regional performance: US Q2 2022 Q2 2023 H1 2022 H1 2023 US Active Subscribers (k) 137 103 137 103 Active Subscriber Growth % vs. 9% (25%) 9% (25%) PCP Net Revenue (EUR m) 54 41 105 86 43% / (24%) / 40% / (18)% / Net Revenue % vs. PCP* 26% (22%) 26% (18)% Contribution Margin % 27% 34% 28% 35
Slide 18: Q2 / H1 regional performance: Australia
Q2 / H1 regional performance: Australia* Q2 2022 Q2 2023 H1 2022 H1 2023 AUSTRALIA Active Subscribers (k) 108 88 108 88 Active Subscriber Growth % vs. 36% (18%) 36% (18%) PCP Net Revenue (EUR m) 42 36 79 72 53% / (13%) / 53% / (9%) / Net Revenue % vs. PCP** 46% (5%) 48% (3%) Contribution Margin % 30
Slide 19: Q2 / H1 regional performance: Europe
Q2 / H1 regional performance: Europe Q2 2022 Q2 2023 H1 2022 H1 2023 EUROPE Active Subscribers (k) 65 44 65 44 Active Subscriber Growth % vs. (5%) (33%) (5%) (33%) PCP Net Revenue (EUR m) 13 9 28 19 Net Revenue % vs. PCP (14%) (34%) (11)% (31)% Contribution Margin % 17% 23% 19% 25% Operating Contrib
Slide 20: FY 2023 capex spend in line with estimates
FY 2023 capex spend in line with estimates and focused on customer- facing product development CAPEX Investments Over Time (EUR M) Digital Platforms PP&E 22 13 Lower estimated spend vs. PY 9 6 2019 2020 2021 2022 2023E • Global ERP implementation • Opened 3rd • New Sydney FC • Selective efficiency •
Slide 21: Business combination impact on the balance sheet
Following the business combination with 468 SPAC II (now Marley Spoon Group SE), pro forma net debt could reduce as illustrated below Business Combination Impact on the Balance Sheet (EUR M)* *Before transaction fees 21 **An additional €10m of non-redeemed SPAC funds, before transaction fees, remain
Slide 22: Updated 2023 financial outlook
Updated 2023 financial outlook Revised: High single digit to low double-digit Net Revenue decline vs. the PCP in constant currency (from % growth single digit net revenue decline) Contribution Margin Affirmed: Contribution Margin expansion to % of NR between 30-32% Revised: Full year 2023 Operating
Slide 23: Strategy
Strategy FABIAN SIEGEL CEO, Founder, Management Board 23
Slide 24: 2023 will be a transition year for our growth story
While 2023 will be a transition year for our growth story… Net Revenue (EUR M) High single digit to low double digit NR decline vs. the PCP in constant currency ~95% CAGR* H2** 401 322 254 H1 177 130 92 (16)% 53 Rptd 4 20 2015 2016 2017 2018 2019 2020 2021 2022 2023E *CAGR calculated for the period
Slide 25: Category is vast, growing and under-penetrated
…the overall growth trajectory is intact, as our category is vast, growing and under-penetrated ONLINE GROCERY: GROWING MEAL KIT PENETRATION OF GLOBAL MASSIVE “UNCLAIMED” MARKET ONLINE GROCERY PENETRATION2 GROCERY…JUST GETTING STARTED3 US Online Grocery Penetration 2021 Estimated global meal kit sal
Slide 26: Conclusions
BUILDING A BETTER EVERYDAY, VISION JUST FOR YOU, JUST RIGHT • Soft consumer environment but product enhancements are driving higher average order value BUSINESS • Contribution Margin expansion driven by focus on UPDATE operating improvements and efficiencies • Cost discipline leading to positive Ope
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Slide 28: Q2 and H1 2023 Key Customer Metrics
Q2 and H1 2023 Key Customer Metrics Operating KPIs* Q2 2023 Q2 2022 % vs. PY H1 2023 H1 2022 % vs. PY Group Active customers1 (k) 346 447 (23)% Active subscribers2 (k) 235 309 (24)% Number of orders (k) 1,473 1,995 (26)% 3,064 4,035 (24)% Orders per customer 4.3 4.5 (5)% Orders per subscriber 6.3 6.
Slide 29: Q2 and H1 2023 Preliminary Income Statement
Q2 and H1 2023 Preliminary Income Statement € in millions Q2 2023 Q2 2022 % vs. PY H1 2023 H1 2022 % vs. PY Revenue 86.0 109.2 (21)% 177.4 211.8 (16)% Cost of goods sold 45.3 60.1 (25)% 93.8 116.1 (19)% % of revenue 52.7% 55.0% (2)pt 52.9% 54.8% (2)pt Gross Profit 40.6 49.1 (17)% 83.7 95.6 (13)% % o
Slide 30: Q2 and H1 2023 Preliminary Cash Flow Statement
Q2 and H1 2023 Preliminary Cash Flow Statement € in millions Q2 QTD 2023 Q2 QTD 2022 % vs. PY H1 2023 H1 2022 % vs. PY Net Income (8.5) (10.8) (21%) (23.2) (27.1) (14%) Adjustments for Non-Cash Expenses 6.0 8.7 (31%) 13.4 15.1 (11%) Change in working capital (8.2) (3.1) 164% 3.1 2.7 12% Interest & t
Slide 31: Disclaimer
Disclaimer This presentation (Presentation) is dated 27 July 2023 and has been prepared by Marley Spoon SE (Marley Spoon or the Company ASX: MMM). By accessing or reviewing this Presentation, you acknowledge and agree to the terms set out below. Important notice and disclaimer This Presentation is f
Slide 32: Disclaimer (cont.)
Disclaimer (cont.) Financial information All financial amounts contained in this Presentation are expressed in EUR, unless otherwise stated. A number of figures, amounts, percentages, estimates, calculations of value and fractions in this Presentation are subject to the effect of rounding. According
Slide 33: Company contacts Investor relations
Company contacts Investor relations Fabian Siegel (CEO) Julia Stötzel Jennifer Bernstein (CFO) junicornconsulting.com ir@marleyspoon.com 33