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Ocado EBITDA down 20.7%

Ocado saw its EBITDA fall by 20.7% to £59.5 million in the year to 2 December as the company invested in a new distribution centre and technology.

FOOD & DRINK

Ocado EBITDA down 20.7%

Ocado saw its EBITDA fall by 20.7% to £59.5 million in the year to 2 December as the company invested in a new distribution centre and technology.

Group revenue increased by 12.3% to £1.59  billion as the number of orders per week climbed by 12% to 296,000. There was also an uplift in the number of active customers which rose by 11.8% to 721,000.

Tim Steiner, chief executive of Ocado, said: "Our performance last year was the result of many years of focus, dedication and perseverance: what we have called our "18-year overnight success". Our growth story, however, is only just beginning. We now have in place a platform for significant and sustainable long-term value creation as the leading pure-play digital grocer in the UK, a world-leading provider of end-to-end ecommerce grocery solutions, and as an innovative and creative technology company applying our proprietary knowledge to a range of challenges.”

During the year, Ocado secured international partnerships with Sobeys, ICA and Kroger to supply them with its online shopping and delivery technology. The company said it is preparing the business to open 23 customer fulfilment centres for its solutions partners in the coming years.

Ocado has also opened a fourth UK customer fulfilment centre in Erith in south London. At full capacity of £1.2 billion, the company said it will be the largest automated grocery fulfilment centre in the world.

Looking ahead, Steiner said: "Our transformation journey is well under way with increased cash fees earned and greater investment as we execute on behalf of our partners. Creating future value now will involve us continuing to scale the business, enhancing our platform, enabling our UK retail business to take advantage of all its opportunities for growth, and innovating for the future. We look forward to fulfilling these opportunities with excitement and determination."

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