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Woolworths deal helps Marley Spoon food service bolster profits down under

Consumer
ASX:MMM      MCAP $5.18M
30 July 2019 22:11 (AEST)

Image sourced ShutterStock

Meal delivery service Marley Spoon’s Australian branch turned a profit in the 2019 second quarter.

Earlier in the year, the subscription-based food provider signed a $30 million deal with supermarket giant Woolworths to help increase its Australian presence.

CEO of Marley Spoon Fabian Siegel said achieving “profitability in Australia…and kicking off our strategic partnership with Woolworths…are great achievements by our team, and a testament to the long-term viability of our business model,”

Global revenue saw a 54 per cent increase in comparison to the previous year, with the US leading figures, recording a 91 per cent increase in revenue.

Despite turning a profit among its Australian operations, overall Marley Spoon reported a loss of five million euros for the quarter.

However this is an improvement on quarter one where the company faced a 12 million euro loss.

Gaining new customers and lowering costs are primary focuses for the company, with aims to achieve profitability across the board by 2020.

New technology to assist with quality and labour productivity were introduced at the company’s manufacturing centres in Melbourne and Sydney.

According to Marley Spoon, the new tech will also allow for the introduction of new menu choices and personalisation.

Marley Spoon’s share prices are fractionally up today by 0.78 per cent, currently sitting at $0.65 per share.

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