Shares in Marley Spoon AG (ASX: MMM) have had a bumper month of June, up a whopping 32%.
Despite no fresh news from the company, investors have added another 6.38% today, lifting the Marley Spoon share price to $3.17.
Marley Spoon is a subscription-based meal kit company, delivering fresh ingredients and recipes directly to consumers.
Let’s take a look at what might be influencing the company’s share price movement.
What’s been happening lately?
The last time Marley Spoon updated the market with price-sensitive news was back in April when the company released its first quarter results.
In that release, Marley Spoon CEO Fabian Siegel announced that user behaviour across the regions had “mostly normalised to its pre-COVID state”. He added:
While COVID-19 brought forward the structural shift online, the penetration rate of online grocery is still in its infancy.
The company highlighted first quarter FY21 revenue growth of 81% to ~$122.45, with all regions including Europe, America and Australia, experiencing a strong uplift in growth.
In this announcement, Marley Spoon upgraded its FY21 net revenue forecasts, expecting FY21 revenue to increase between 30% to 35% year-on-year.
First quarter results aside, investors might also consider these factors which could be influencing its recent rally.
Tackling supply chain challenges
Despite a strong first quarter, Siegel said that “the dramatic growth we have seen across all e-commerce verticals in 2020 has created some temporary operational challenges in logistics, labor and supply chain infrastructure in the industry”.
Fast forward to the company’s annual general meeting on 11 June, Siegel outlined the company’s continued investment in additional capacity and process improvements.
To meet customer demand, the company expanded cool room capacity at manufacturing centres in Melbourne, New Jersey, Texas and the Netherlands.
Additionally, a new manufacturing centre was launched in Perth. And major expansion projects are expected to begin in California and Sydney.
