6 April 2021 Marley Spoon AG (MMM) - Initiation Wayne Sanderson – Head of Research Initiation of coverage – Delivering Healthy Structural Growth
[email protected] +61 400 434 548 Recommendation Buy PT $3.96 Summary Marley Spoon AG (MMM) is a subscription-based weekly meal Risk Rating High kit provider founded in Germany in 2014. A meal kit is a box 12-mth Target Price (AUD) $3.96 delivered directly to the customers’ home which includes the Share Price (AUD) $2.63 required ingredients to cook typically two or more meals along 12-mth Price Range $0.21 - $3.80 with step-by-step recipe instructions. Menus change weekly Forecast 12-mth Capital Growth 50.6% with 20-30 different choices per week. Forecast 12-mth Dividend Yield 0.0% MMM currently services customers in 8 countries across 3 three continents: Australia, USA and Europe (Austria, Belgium, 12-mth Total Shareholder Return 50.6% Denmark, Germany, the Netherlands and Sweden). Since launch, it has delivered over 92 million meals (46m in 2020). In Market cap ($m) 673.3 (EUR 437.7m) Q4 2020 it had 327,000 active customers, up 80% year-on- Net debt (net cash) ($m)(Dec 20) (5.3) (EUR 1.8m) year. MMM has also launched a second brand – Dinnerly Enterprise Value ($m) 676.0 (EUR 439.4m) which targets more cost-conscious consumers. Gearing (Net Debt/ Equity) 17% MMM launched in Germany in August 2014, the USA in April Shares on Issue (m) 256.0 2015 and Australia in June 2015. It listed on the ASX in July Options / est.