THE RETAIL BULLETIN - The home of retail news
Lest we forget
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
Interviews
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE
Ocado warns on profit following problems at fulfilment centre

Online grocer Ocado has announced that full-year profits will be below analystsÂ’ expectations following capacity constraints at its Hatfield customer fulfilment centre.

CITY & CORPORATE

Ocado warns on profit following problems at fulfilment centre

Online grocer Ocado has announced that full-year profits will be below analystsÂ’ expectations following capacity constraints at its Hatfield customer fulfilment centre.

Ocado said in a statement issued today that margins had been impacted by production issues as well as by the cost of employing additional labour at the centre as it worked to install further capacity. 

The company said EBIDTA  for the year ending 27 November was expected to be in the range of £27.5 million to £28.5 million compared to £22 million  in 2010.

Gross sales were approximately £643 million for the full financial year, up 16.7% on the previous year.

The build for Ocado's second CFC in Warwickshire was on-time and on-budget, the company said. Furthermore, capital expenditure for the financial year was lower than expected, in the range of £125 million to £130 million, due to the timing of capital expenditure payments.

Chief executive Tim Steiner Tim Steiner, said he was disappointed that Ocado did not achieve as large or as early an increase in sales as had been originally planned.

"There is more work to be done and we are focused on delivering capacity and sales growth in the first half of 2012," he added.

 

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

The Retail Design Seminar 2018
The Retail Design Seminar 2018
14 November 2018
The Cavendish Conference Centre
The Retail Design Seminar 2018
Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
AI in Retail Conference 2019
AI in Retail Conference 2019
18 September 2019
Cavendish Conference Center, 22 Duchess Mews, London W1G 9DT
Retail marketing is changing pace rapidly by making communication across all platforms personalised, relevant, efficient, and helpful. AI not only helps shoppers find a perfect product but also pre-empts the shopping behaviour and speeds up payment.
The HR Summit 2019
The HR Summit 2019
Tuesday 8 October 2019
The Cavendish Conference Centre, London W1
The 11th HR Summit 2019, The Cavendish Conference Centre, London W1, 8 October 2019
Fix The Dinosaur Roundtable 2018
Fix The Dinosaur Roundtable 2018
19 October 2018
The Euston Suite, The Hallam, 44 Hallam St, London W1W 6JJ
A Masterclass in IBMi Legacy Issues