Ocado sales hit by cost of living crisis
Ocado Group has posted a first half EBITDA loss of £14 million compared to a profit of £61 million in the corresponding period in the prior year.
The six months to 29 May also saw the group’s revenue drop by 4% to £1.3 billion.
Revenue at Ocado Retail, the group’s joint venture with M&S, declined by 8% in the period due to a post-pandemic contraction in the grocery market and the cost of living crisis in the UK.
Meanwhile, the group posted a pre-tax loss £211 million following depreciation and amortisation costs relating to the ongoing roll out of its Ocado Smart Platform and reduced exceptional insurance income received in the period.
In contrast, international solutions revenue more than doubled to £59 million.
Ocado said it is on track to deliver results in line with previous guidance with Ocado Retail delivering low single digit revenue growth and Ocado Smart Platform sales more than doubling.
Tim Steiner, chief executive of Ocado Group, said: “The last six months has seen significant progress at Ocado Group and we have put all the building blocks in place to deliver profitable growth and strong cash flows.
“Our international solutions business has good momentum, with 16 CFCs now open, of 58 committed so far. Each of these CFCs will generate dependable, recurring cash flows and attractive returns on capital. 11 of the world’s leading grocers are looking to Ocado to provide the technology and solutions to power their online grocery activities and our new partner pipeline is as strong as ever.”
