Ocado posts full year sales growth as retail business returns to profit
Ocado Group has posted a 9.9% increase in annual group revenue to £2.8 billion following improved performances at its retail and technology businesses.
In the year to 3 December, its Ocado Retail business saw its revenue increase by 7%, while revenue at its technology solutions business surged by 44%.
Group adjusted EBITDA came in at £51.6 million compared to a loss of £74.1 million in the prior year as the Ocado Retail business returned profit with an adjusted EBITDA of £10.4 million.
The Ocado Retail performance was driven by a mix of active customer growth of 5.9% to 998,000, growth in average orders per week of 4%, and the average basket value increasing by 2.7%.
Tim Steiner, chief executive of Ocado Group, said: “I am pleased to report good progress across the group in 2023. Our technology is transforming the way people shop for food as we help some of the world’s best and most innovative retailers set the bar for excellence in grocery ecommerce worldwide.”
During the year, the group opened new state-of-the-art robotic customer fulfilment centres in Tokyo, Calgary and Luton. Three further centres are expected to go live internationally during new financial year, including two for Coles in Melbourne and Sydney and one for Alcampo in Madrid.
Looking ahead to the outcome of the current year, the group said it expects to deliver mid-high single digit percentage revenue growth for Ocado Retail and 15% to 20% growth for its technology business.
Steiner said: “Future success will be driven by the characteristics that have always set Ocado apart: our ability to solve some of the most difficult engineering challenges in the market, our capacity to innovate at pace, and our discipline to turn vision into reality.
“I’m confident that we will turn these qualities into faster growth, stronger cash flows, and higher returns, in the current financial year and beyond.”
