Supermarkets

Ocado losses widen to £211m

Group revenue fell 4% to £1.3bn, while retail revenue fell 8% to £1.1bn

Ocado has revealed an interim loss before tax of -£211m, for the 26 weeks ending on 29 May, which it said “reflects increased depreciation and amortisation costs with the ongoing roll out of OSP, and reduced exceptional insurance income received in the period, compared with the prior year”.

Meanwhile group revenues fell 4% to £1.3bn, while retail revenues fell 8% to £1.1bn. The group said this offset was created by “strong growth in international solutions and UK solutions and logistics”.

International Solutions revenues more than doubled to £59m.

Group EBITDA saw a loss of £14m against a profit of £61m in 1H21; driven largely by retail that saw a £72.8m reduction in EBITDA due to lower sales and cost inflation, partly offset by release of management long-term incentive provisions

However, the group reported strong liquidity position of £1.1bn at 1H22; currently c.£2.0bn including £578m capital raise and £300m bank financing on 21 June

Tim Steiner, chief executive officer of Ocado Group, said: “The last six months has seen significant progress at Ocado Group and we have put all the building blocks in place to deliver profitable growth and strong cash flows. Our International Solutions business has good momentum, with 16 CFCs now open, of 58 committed so far.

“Each of these CFCs will generate dependable, recurring cash flows and attractive returns on capital. 11 of the world’s leading grocers are looking to Ocado to provide the technology and solutions to power their online grocery activities and our new partner pipeline is as strong as ever.”

He added: “Ocado Re:Imagined, the suite of ground-breaking innovations launched in January this year, will redefine both the customer experience, and the economics, of online grocery shopping. We expect enhanced economics, and improved customer propositions, to lead to faster growth from existing, and new, OSP partners.”

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