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Original-Research: Marley Spoon Group SE - from NuWays AG

12.05.2025 / 09:00 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQ

Group.

The issuer is solely responsible for the content of this research. The

result of this research does not constitute investment advice or an

invitation to conclude certain stock exchange transactions.

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Classification of NuWays AG to Marley Spoon Group SE

Company Name: Marley Spoon Group SE

ISIN: LU2380748603

Reason for the research: Update

Recommendation: BUY

from: 12.05.2025

Target price: EUR 2.70

Target price on sight of: 12 month

Last rating change:

Analyst: Christian Sandherr

Further op. improvements // focus on margins; chg.

FY24 sales increased by 0.5% yoy to EUR 330m carried by the continued

execution of the company's strategic priorities, visible in a rise of order

frequency of active subscribers, improved average order volume (+13.5% yoy),

slowed customer churn but also the successful integration of Bistro MD.

Note: The reported FY24 sales figures shows EUR 308m as Chefgood has been

re-classified as „discontinued operations“ as MSG signed an asset sale

agreement at the end of Q4.

More importantly, MSG recorded a positive operating EBITDA for the fifth

consecutive quarter with EUR 5.9m, EUR 9.2m for FY24 (vs. EUR - 3m in FY23). To a

large extent, this is the result of the improved contribution margin (FY24

+3.1pp yoy to 34.7%) driven by the successful shift away from its former

discountheavy acquisition strategy but also positive implications from an

improving product mix in the US as a result of the bistroMD acquisition and

the shift towards an asset light operation in the US. Further, G&A and

marketing expenses decreased by 8% for the FY. Chefgood divestment. At the

end of Q4, MSG decided to sell its subsidiary Chefgood, the group'

Australian ready-to-heat brand, for AUD 11m/EUR 6.3m, implying an EV/sale

multiple of 0.3x. Worth highlighting,

Chefgood operated at sub group gross margins (44.6% vs. 49.2%), making thi

a sensible move. The expected cash inflow (mainly in Q2) coupled with the

cash on hand and the expected further operational improvements should be

sufficient to bridge the gap to op. cash flow profitability, in our view.

FY25 guidance reflects further profitability focus. Management expects a

single-digit % yoy sales decline ttwhile at the same time the contribution

margin is expected to improve by >100bps and operating EBITDA to increase by

70-80% yoy (i.e. EUR 15.6-16.6m).

Strategic shift ongoing. MSG discontinued its brand Dinnerly (meal kit boxe

for cost-conscious consumers) in Europe and migrated active customers to

Marley Spoon, driving its single brand strategy, which offers simpler

processes and synergies in regards to marketing. In Q2, the group plans to

launch its ready-to-eat (RTE) offering in Europe. During the mid-term,

management highlighted plans to offer additional food and nutrition

solutions (e.g. juice packs, healthy snacks, special diet meals) under the

Marley Spoon brand, ultimately increasing the value proposition for

customers on the platform.

BUY with a new EUR 2.70 PT (old: EUR 4.90) based on DCF.

You can download the research here: http://www.more-ir.de/d/32556.pdf

For additional information visit our website:

https://www.nuways-ag.com/research-feed

Contact for questions:

NuWays AG - Equity Research

Web: www.nuways-ag.com

Email: research@nuways-ag.com

LinkedIn: https://www.linkedin.com/company/nuwaysag

Adresse: Mittelweg 16-17, 20148 Hamburg, Germany

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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschlu

bestimmter Börsengeschäfte.

Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben

analysierten Unternehmen befinden sich in der vollständigen Analyse.

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2134668 12.05.2025 CET/CEST

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