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Online supermarket Ocado Retail has reported a 15.5% rise in revenues for the 70 weeks to 6 April and an improvement in profitability after increasing its customer base and order volumes in the past financial year.
As a joint venture between Ocado Group and M&S, the online retailer’s extended reporting period is said to reflect a shift in year-end from November to April to bring its accounts in line with Marks and Spencer.
Ocado attributed its performance to customer numbers rising 14.6% to 1.2 million, helping drive higher order volumes. Average basket size also held steady, while selling prices rose by just 0.4%, below the rate of inflation. Sales of M&S-branded products grew 21%.
Meanwhile, adjusted EBITDA increased 78.3% to £53.5m and pre-tax losses were reduced to £60m, compared with £121.7m previously.
The company also generated cash during the year, ending the period with £68.2m in cash and equivalents, down from £76.4m.
According to the business, its performance reflected cost controls and its “Perfect Execution” strategy, which it described as focusing on “unbeatable choice, unrivalled service and reassuringly good value”.
Ocado Retail operates seven automated fulfilment centres across the UK, supported by regional depots and a branded delivery fleet serving more than 80% of households. It sells more than 45,000 products, including Marks and Spencer ranges, branded goods and Ocado’s own lines.
