Ocado records £289m losses in first half

Ocado Group recorded pre-tax losses of £289 million in the first half of the year ended 28 May.

The results follow a previous loss of £211 million during the same period of last year.

However, the group did return to profit over the six-month period, recording post core earnings of £16.6 million compared to a loss of £13.6 million in 2022.

Ocado Retail saw revenue jump by five per cent from £1.128 billion to £1.178 billion, while group revenue was also up by 8.6 per cent from £1.262 billion to £1.370 billion.

The company attributed its revenue growth to strong active customer growth of over 10 per cent, growth in average orders per week of four per cent, and the average basket value increasing by 1.5 per cent.

It said that the basket value increase was driven by average selling price increasing by 8.4 per cent, which was offset by smaller basket sizes and a lower frequency of orders.

Over the period, Ocado Retail's share of the online grocery market increased marginally from 12.7 per cent to 13 per cent.

The company predicts for the second half of the year, Ocado Retail customer and order numbers will reflect the "tougher comparison with significant customer acquisition actions in Q322", while EBITDA will be "marginally positive" in the full year.

"Ocado Group has made good progress over the last six months," said Tim Steiner, chief executive, Ocado Group. "Technology Solutions has continued to deliver our industry-leading Ocado Smart Platform around the world and the opening of the first CFC for AEON, Japan's biggest food retailer, in Chiba City, just outside Tokyo, is a landmark for the grocery sector."

He continued: "At a Group level, I am pleased to see the operational and financial discipline delivered by all our teams as we focus on driving cost efficiencies and cash flow improvement. For these reasons, we look forward to delivering the full potential of the business and continuing to create lasting value for all our stakeholders."

The results come days after Ocado announced the launch of its first robotic warehouse in Asia.

The UK-based supermarket and technology firm has built the warehouse in Hachioji, Tokyo for Aeon, an online grocery business for the Japanese market.

Ocado said that the customer fulfilment centre – described as the 'first of its kind' – will serve the Kanto region and promises a 50,000 product range at scale, Smart Cart function and one-hour delivery slots for customers. It will serve contents through Aeon’s Green Beans online grocery delivery brand which was launched in April 2023.

    Share Story:

Recent Stories

Smarter merchandise planning across the retail value chain
In this webinar, Matt Hopkins, Head of Retail Solutions, Board, Catherine Tooke, SVP Product & Planning, Sweaty Betty, and Subir Gupta, Managing Principal, Thought Provoking Consulting join Retail Systems Editor Jonathan Easton to discuss the findings of the recent Retail Systems report The Merchandise Planning Challenge: How are retailers harnessing technology to optimise planning and retain customers? and examine the innovations that are improving retail planning.
Better Together: Optimising store fulfilment with POS and OMS
Customers want a coherent, connected journey when they engage with a retailer.

An Order Management System (OMS) helps retailers manage inventory across the multiple channels they’re selling through.