The Marley Spoon AG (ASX: MMM) share price will be one to watch on Friday.
This follows the release of the subscription-based meal kit provider's full year results after the market close.
How did Marley Spoon perform in FY 2020?
For the 12 months ended 31 December, Marley Spoon reported a 96% increase in revenue to 254 million euros.
While this was driven by strong revenue growth across all geographies, the star of the show was its US business. It reported a 126% increase in revenue to 127 million euros thanks to growth across all brands.
Positively, despite operational headwinds related to the COVID-19 pandemic, the US business was able to increase its contribution margin by 6 percentage points. This led to the business turning profitable on an operating EBITDA basis.
Supporting its growth was its Australia business, which delivered a 76% increase in revenue to 86 million euros, and its Europe business, which grew revenue by 66% to 41 million euros.
This ultimately led to the company reporting a contribution margin of 26% and an operating loss of 0.5 million euros for FY 2020. The latter was a big improvement on its 29.8 million operating loss a year earlier. Furthermore, the company achieved an operating profit of 1.5 million euros for the second half, which bodes well for FY 2021.
At the end of the period, Marley Spoon had 227,431 subscribers. This was up 83% on FY 2019's subscriber numbers.
Management commentary
Marley Spoon's CEO, Fabian Siegel, commented: "2020 was a significant year for Marley Spoon. We doubled revenue in a challenging operational environment and invested in the foundations for future growth."
"We continue to see opportunities to invest in new customer growth at attractive unit economics. These marketing investments, combined with our investments in expanding manufacturing capacity, developing our digital technology platform, and further strengthening our leadership team, position us well for the coming years. We are encouraged by the continued adoption of online grocery shopping by consumers, a trend we are well-poised to capitalise on given the strength of our direct-to-consumer engagement capabilities."
Outlook
Due to the continued strong global growth in online meal kit adoption and retention of customers acquired in FY 2020, Marley Spoon expects to grow revenue between 25% to 30% in FY 2021.
It is also expecting its contribution margin to improve to between 30% to 31%.
Mr Siegel noted: "We have started FY2021 strong in all markets, with the US continuing to be our biggest growth engine. We demonstrated improved unit economics in FY2020 which reflects the accelerated shift to online shopping as a result of the pandemic. This trend is continuing, and we see opportunities to continue to attract new customers at a faster pace."
