Märkte & Kurse

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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 EQS
Group.
The issuer is solely responsible for the content of this research. The
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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 months
     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's
Australian ready-to-heat brand, for AUD 11m/EUR 6.3m, implying an EV/sales
multiple of 0.3x. Worth highlighting,

Chefgood operated at sub group gross margins (44.6% vs. 49.2%), making this
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 boxes
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
++++++++++
Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss
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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