The Marley Spoon AG (ASX: MMM) share price has stumbled in early trade.
Shares in the subscription-based meal-kit provider are trading lower after releasing its results for the first half of FY21 at the close of yesterday's session.
Let's take a look at how Marley Spoon performed in the first half.
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How did Marley Spoon perform for the first half of FY21?
For the first half ending 30 June 2021, Marley Spoon delivered solid topline results.
The company's report was headlined by a 36% growth in revenue – 158 million euro ($255 million) – for the first half.
Marley Spoon attributed the strong growth to a 37% increase in active subscribers, which hit 272,000 in the first half.
Despite revenue growth, the company cited operational challenges for the first half driven by supply chain disruptions.
As a result, Marley Spoon reported a contribution margin (CM) of 27.3% for the first half. This compares to 30.1% in the prior corresponding period.
In addition, the company noted that increased investment in marketing resulted in general expenses increasing to 19% of revenue.
Overall, Marley Spoon reported global operating earnings before interest, tax, depreciation and amortisation (EBITDA) loss of 14.8 million euro ($23.9 million). This compares to a loss of 2 million euro ($3.2 million) in the first half of 2020.
The company finished the first half with a cash balance of 46.3 million euro ($74.8 million). It cited breakeven cash from operations.
Outlook for Marley Spoon
Marley Spoon anticipates continued growth for the second half of 2021.
As a result, the company reaffirmed its full-year net revenue guidance of 30%–35% growth compared to the prior corresponding period.
Marley Spoon also expects CM to increase in the second half. The company expects full-year CM expected to be in line with last year's full-year margin of 29%.
As a result of continued investment in growth marketing, it expects to incur further operating EBITDA losses in the second half of 2021.
Marley Spoon noted that this strategy will translate to negative cash from operating activities for the second half.
The company noted its strategy for 2022 and beyond will focus on continued investment for strong customer and revenue growth.
Marley Spoon CEO Fabian Siegel highlighted, "We are excited about our long-term growth potential over the coming years, and we believe we are adequately funded to fulfil these growth ambitions."
Snapshot of the Marley Spoon share price
Marley Spoon is the second largest subscription-based meal-kit provider in Australia. The company delivers fresh ingredients to customers in Australia, the United States and Europe.
The Marley Spoon share price has struggled to gain traction in 2021. Shares in the company are trading more than 27% lower since the start of the year.
At the time of writing, Marley Spoon shares have tumbled 2.48% in early trade, hitting an intra-day low of $1.86.
