Ocado Group has delivered a “strong” first-half performance as revenues increased 13.2% to £674m and underlying adjusted profits almost doubled.
CEO Tim Steiner said the aim was to turn the company cashflow positive in the next financial year, as it continued to consume more cash than it made.
Underlying cash outflow totalled -£108m in the half, a £93m improvement on -£153.3m a year ago.
The group’s technology solutions arm boosted sales by 14.9% and the third-party logistics operation registered a 12.1% rise in the 26 weeks to 1 June.
Adjusted EBITDA jumped by 77% to £91.8m, with technology profits more than doubling to £72.8m.
Ocado still recorded an adjusted pre-tax loss of £137.1m for the period following high finance costs and registering significant depreciation and amortisation, but the total was an improvement on the £152.6m recorded for the first half a year ago.
Overall profits received a boost from the separation of the Ocado Retail joint venture with M&S, with the performance no longer being consolidated in the Ocado Group results.
Ocado continues to hold a 50% share in the JV but the tie-up is now considered an arms-length investment, with the group reporting an accounting gain of £782.6m after valuing its 50% share at £750m.
Statutory profits for the half moved from a £143.6m loss a year ago to £694.9m in the black as a result.
Ocado Retail revenues in the half increased 16.3% to £1.5bn, with adjusted EBITDA up 61% to £33.3m. The JV also improved losses from £27.8m to £24.9m.
“Ocado Group has delivered a strong first half and we have reached important milestones both in our UK business, as well as across our international partnerships,” said CEO Tim Steiner.
“Our Technology Solutions division has more than doubled EBITDA and our underlying cashflow has improved significantly, ending the period with liquidity in excess of £1bn. Our focus remains on turning cashflow positive during FY26, supported by continued growth with our partners and cost discipline across the business.”
He added: “Our current exclusivity terms are expected to roll off in multiple markets towards the end of this year, and we will start ramping up commercial conversations across global regions. Many of these markets have developed substantially in recent years and the online channel is fully established as the major growth driver in grocery globally. This is an exciting moment to bring the proven, enhanced and even more flexible Ocado offering back to these markets.ˮ
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