Marley Spoon provides subscription-based weekly meal kit services in Australia, the United States, and Europe. The company was founded in 2014 and is headquartered in Berlin, Germany.
Key points in the video:
- Management is of a sound pedigree, the founder previously owned then sold Delivery Hero before forming Marley Spoon.
- Marley spoon (sub 1 x book) has a cheap valuation compared to its main competitors Hello Fresh (2x book) and Blue Apron (2.2x book) and a higher growth rate, pre-COVID 40% per annum, currently forecasting 100% per annum
- Marley Spoon is already a global player and is well established in the largest growing countries of the US, Europe, and Australia which provide a multi-billion $ opportunity.
- Woolworths currently have an equity stake in the company.
- The food industry is one of the last remaining businesses to embrace digitization, it is now experiencing rapid digital transformation and Marley Spoon is at the forefront of this rapid growth.
- It has recently achieved cash flow breakeven, which is a significant juncture; the market commonly re-rates companies when this happens as it enables the company to grow their top line faster or reward shareholders by paying a dividend.
Ryan Sohn
Deputy Portfolio Manager
BCom(Fin & Acc)
Ryan joined Perennial Value in August 2018 and has research and investment management responsibilities for micro and small cap in the industries of technology, information technology, telecommunication, China discretionary and Pre-IPO/Unlisted investments. Ryan’s previous role was an Investment Analyst at Monash Investors, an Absolute Return Hedge Fund. During this time Ryan focused on listed and unlisted technology companies as well as general industrial research. Prior to joining Monash Investors Ryan spent two years in Investment Banking at HSBC focusing on structured banking. Ryan holds a Bachelor of Commerce (Finance, Accounting and Marketing) from the University of Western Australia in which he graduated with high distinction. Ryan has successfully started his own start up and also has an active investment blog targeted at millennial investors
