The benchmark S&P/ASX 200 Index (ASX: XJO) may have sunk lower again on Monday, but that didn't stop the Marley Spoon AG (ASX: MMM) share price from rocketing higher.
The shares of the leading meal kit provider for home cooking surged a massive 52% higher to 64 cents.
This latest gain means that Marley Spoon's shares are now up over 150% in the space of just one week.
Why is the Marley Spoon share price rocketing higher?
Investors have been scrambling to buy the company's shares since the release of a market update last week.
According to that update, Marley Spoon has experienced an unprecedented surge in demand for its home delivered meal kits in all markets following the outbreak of COVID-19 and the launch of government countermeasures.
And while the company acknowledges the uncertainties of the current operating environment, to date it has been managing this significant scale up while still upholding high levels of food safety and safeguarding the health of its employees.
In light of this growing demand, the company advised that it is expanding its workforce globally and providing additional jobs in its communities.
What now?
This surge in demand is expected to lead to the company reporting first quarter revenue of at least €42 million. This will be a 40% increase on the prior corresponding period.
In addition to this, customer acquisition costs and marketing expenses have started to drop significantly thanks to the strong organic demand.
Marley Spoon CEO Fabian Siegel commented: "Customers are staying home and want to cook for their families. We are dedicated to upholding the strictest food safety standards so that our meals are delivered safely and reliably every week. Receiving fresh food direct to your door without exposure to the public is as much about staying healthy as it is about being safe. The team at Marley Spoon is proud to be able to help in this crisis delivering food to our customers and fulfilling its role as an essential business."
