Ocado group CEO Tim Steiner has said he is “fully focused” and “as excited and energised about Ocado’s future” as he has ever been, amid rumours of his exit from the company.
Introducing the group’s first-half results this morning, Steiner pointed to “strong commercial momentum” and “rigorous cost discipline” that will take the group into sustainable positive cashflow in the second half of the year.
But while Ocado’s headline revenue soared 54% to £1bn thanks to a £354m payout from Kroger and Sobeys’ contract cancellations, revenues excluding the closures grew just 1% in the first half of the financial year.
Group underlying profitability (EBITDA) declined from £92m to £81m, with underlying net cash outflow of £147m – more than a third more than in the first half of 2025.
Steiner said the company had made “significant organisational changes to strengthen cost and capital discipline”.
Ocado is currently undertaking a £150m cost reduction programme, for which the vast majority of initiatives were actioned in the second quarter of the year, with benefits expected in the second half.
He added the company had been re-engaging with retailers across the world’s largest grocery markets, with the US a particular focus, supported by a “significantly evolved” portfolio of technology.
Yet while the group has achieved strong growth in its international warehouse volumes – up 27% – several key projects have been delayed, with Kroger’s Phoenix site pushed back a year, as well as the Lotte Shopping site in Seoul.
“The fact of the matter is that Ocado needs more tech contracts with retailers,” said Freetrade investment writer Duncan Ferris.
“Technology Solutions revenue and profit declined, the number of live modules fell, and underlying cash burn worsened. Ocado might have been well compensated for customers’ warehouse closures, but termination payments are not a sustainable growth model.”
The results made for “high stakes” in Ocado’s newly inked deal with Asda.
“We need to see other retailers forming a queue soon, too,” said Ferris. “Ocado says US engagement is strong, but shareholders need to see interest turning into signed contracts.”
As for his own position, and rumours of a headhunting process for a new CEO, Steiner said only that the company had in recent weeks ”established a clear process for long-term succession planning at Ocado”.
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