Ocado ups FY guidance as Q3 sales rise 15%

Ocado has hiked its full-year guidance after a period of strong growth and trading in Q3, boosted by a rise in customers and its online grocery business. The group now expects full-year revenue growth to be in the low double digits, up from its previous guidance of mid-high single digits.

It comes as third quarter retail revenues rose by 15.5% to £658m, with sales volumes rising 15.4% year-on-year and average orders per week grew by 14.7% to 437k. 

This was largely driven by growth in active customers, who rose by 10.3% to 1.06 million in the quarter. Ocado also cited an improved year-on-year frequency as slot availability and its grocery proposition improved.

Despite its growth over the period, this was slightly offset by a dip in average selling prices, which fell by 0.4%. According to the group, this was “driven by continued investment in price, driving further improvements in value perception”. Average basket value was broadly flat at £120.97.

Hannah Gibson, Ocado Retail’s CEO, said: “Our strategy remains focused on giving our customers unbeatable choice, unrivalled service and reassuringly good value. We’re seeing the momentum of this, with more customers shopping with us more often, getting even better service at better value. 

“We know what our customers love, and we’re focused on our proposition every day. This includes our widest ever choice including more M&S food, more convenience with better availability of delivery slots and products, further improving our high perfect order rate and better value for money through our Ocado Price Promise and our latest Big Price Drop. We’re pleased with the progress we’re making and excited about how much more there is to deliver.”