The Marley Spoon AG (ASX: MMM) share price has had a bumper month so far in June.
The subscription-based meal kit company’s shares have lifted 20.82% this month to $2.96.
What’s driving the Marley Spoon share price?
2021 annual general meeting
Marley Spoon’s annual general meeting took place last Friday. While the announcement wasn’t flagged as price-sensitive, it reiterated the company’s growth trajectory and strategy for moving forward.
Marley Spoon founder and CEO Fabian Siegel described 2020 as a “pivotal year” with “massive growth” that enabled the company to achieve the scale necessary to become profitable for the first time in 2Q20. The company’s maiden profit was underpinned by the doubling of revenues to 254 million euros (~A$400 million).
Looking ahead, Siegel said, “in 2021 we will continue to invest in additional capacity to support the increasing customer demand and our growth ambitions.”
This included the expansion of cool room capacity in the company’s manufacturing centres in Melbourne, New Jersey, Texas and the Netherlands. It’s in addition to a new manufacturing centre in Perth and major expansion projects in Sydney and California.
Meal kit market tailwinds
A widely shared research report titled ‘Meal Kit Market Global Forecast by Country, Type, Ordering Method (Online, Offline), Category (Vegetarian, Non-Vegetarian), Company Analysis’ could be another factor driving the Marley Spoon share price.
The in-depth report said the meal kit industry had grown exponentially in recent years. The onset of COVID-19 has brought about additional tailwinds that “have seen the market for meal kits hit skyrocket”.
According to the report, the global meal kit industry is expected to grow at a compound annual growth rate (CAGR) of 13.3% between 2020 and 2027, from US$8.4 billion to US$20.1 billion.
This bullish report could be one of the reasons why the Marley Spoon share price jumped almost 9% last Wednesday to $2.67.