Ocado returns to profit in 2023

29th Feb 2024 07:21

(Sharecast News) - Ocado said on Thursday that it swung back to an underlying profit in 2023 as its joint venture with M&S returned to profit.

In the 53 weeks to 3 December 2023, group adjusted earnings before interest, tax, depreciation and amortisation came in at £51.6m, versus a loss of £74.1m a year earlier as Ocado Retail - its joint venture with Marks & Spencer - returned to a positive adjusted EBITDA of £10.4m from a £4m loss.

Ocado made a pre-tax loss of £403.2m for the year, which was better than the £500.8m loss reported a year earlier and analysts' expectations of £410m.

Revenue was 9.9% higher at £2.8bn, with revenue in Technology Solutions up 44%, while Ocado Logistics and Ocado Retail saw increases of 1% and 7%, respectively.

Chief executive Tim Steiner said: "I am pleased to report good progress across the group in 2023. Our technology is transforming the way people shop for food as we help some of the world's best and most innovative retailers set the bar for excellence in grocery ecommerce worldwide.

"We opened three new state-of-the-art robotic CFCs; in Chiba city (near Tokyo) in Japan, Calgary in Canada, and Luton here in the UK and increased the amount of installed capacity for our clients by a quarter. We now have installed capacity at our retail partners for gross annual grocery sales of over £8bn.

"Ocado Retail, our JV with M&S in the UK, has had significant success growing customer numbers, taking online grocery market share and rebuilding profitability, proving, once again, the attractions of our online model."