Ocado’s precedence is to generate money – moderately than burn it – in its subsequent monetary yr, the British on-line grocery store and expertise group stated, because it reported a 76.5% rise in underlying earnings in its first half.
The group runs a web-based grocery store by way of a three way partnership with Marks & Spencer, although its market worth is especially pushed by the sale of its cutting-edge robotic warehouse expertise to retailers around the globe.
It stated its core precedence was to show money circulate constructive throughout its 2025/26 yr – which begins in December – by lowering prices, and to be full-year money constructive within the following yr.
Shares in Ocado have fallen 35% during the last yr, reflecting market nervousness on the tempo of recent web site openings for its present grocery retail companions and a scarcity of expertise offers with new companions.
Ocado’s most vital associate, Kroger in america, has slowed its roll-out of automated warehouses, or buyer fulfilment centres (CFCs) as Ocado calls them, whereas final yr its Canadian associate Sobeys paused the opening of a fourth warehouse.
Final month, Ocado did, nevertheless, increase its partnership with Spanish grocery store group Bon Preu.
Ocado has an additional eight CFCs attributable to go stay over the subsequent three years.
First-Half Highlights
The group stated it made adjusted earnings earlier than curiosity, tax, depreciation and amortisation (EBITDA), its most popular revenue measure, of £91.8 million ($122.9 million) within the first half of its 2024/25 yr, up from £52.0 million in the identical interval a yr earlier. Income rose 13.2% to £674 million.
Ocado swung to a statutory first half-profit of £611.8 million versus a lack of £153.3 million a yr earlier, reflecting modifications to the best way it accounts for its stake within the Ocado Retail three way partnership with M&S.
The group stated its expectations for the complete yr have been unchanged.
