Ocado sales boosted by shift to online grocery shopping
Ocado saw its revenue jump by 32.7% to £2.3 billion in the year to 29 November after it benefited from a shift to online grocery shopping during the coranavirus pandemic.
Retail revenue climbed by 35.3% in the period as the retailer’s average basket value rose from £106 to £137.
However, Ocado said higher revenues were offset by increased investment in platform growth, including technology resouces, infrastucture and new staff to support international relationships. In addition, the retailer incurred higher Covid-19 related costs such as frontline worker bonuses and extra safety measures.
While EBITDA climbed to £73.1 million from £43.3 million in the prior year, the retailer narrowed its statutory pre-tax loss to £44 million from a previous loss of £214.5 million.
Tim Steiner, chief executive of Ocado Group, said: “The rapid acceleration of many pre-existing trends in business and society has been a feature of the Covid-19 crisis and the dramatic channel shift in grocery is a clear example of this. The landscape for food retailing is changing, for good. As we look ahead to a post-vaccine world and a return to a new normality, Ocado Group is very well placed to enable our grocery partners worldwide to bring the best customer experience to market, responsibly, with high levels of hygiene and superior, sustainable, and proven economics.”
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