Analysts Expect Breakeven For Marley Spoon Group SE (ETR:MS1) Before Long

We feel now is a pretty good time to analyse Marley Spoon Group SE's (ETR:MS1) business as it appears the company may be on the cusp of a considerable accomplishment. Marley Spoon Group SE, through its subsidiary, Marley Spoon SE, operates as a direct-to-consumer (DTC) meal-kit company. The €90m market-cap company’s loss lessened since it announced a €13m loss in the full financial year, compared to the latest trailing-twelve-month loss of €7.2m, as it approaches breakeven. The most pressing concern for investors is Marley Spoon Group's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Check out our latest analysis for Marley Spoon Group

According to the 2 industry analysts covering Marley Spoon Group, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of €1.3m in 2025. Therefore, the company is expected to breakeven just over a year from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 64% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Marley Spoon Group's growth isn’t the focus of this broad overview, but, bear in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we would like to bring into light with Marley Spoon Group is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

There are key fundamentals of Marley Spoon Group which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Marley Spoon Group, take a look at Marley Spoon Group's company page on Simply Wall St. We've also put together a list of essential factors you should further examine:

1. Valuation: What is Marley Spoon Group worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Marley Spoon Group is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Marley Spoon Group’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.