Ocado UK performance demonstrates “potential” for international ambitions
The chief executive of Ocado has said that the retail company’s UK operations are an “important demonstration of the potential” of its international ambitions.
Tim Steiner said the company is seeking to “transform the economics of online grocery” and expand into other markets, namely automated storage and retrieval solutions.
This comes as the retail company posts its half year report for the 26 weeks ending 28 May, during which the group saw revenue reach £1.9bn, an increase of 9%.
Ocado’s retail division’s revenue grew by 5% and its logistics revenue increased by 2%. However it was the group’s technology solutions division which saw the biggest increase, of 59%.
However, Ocado’s retail division saw a small loss in terms of earnings (EBITDA).
Ocado said it had continued strong customer acquisition growth in its retail business, with items per basket stable since last October, while an improved customer focus and efficiencies delivered positive earnings throughout the second quarter.
The retail group said its logistics division, which supports Ocado Retail and Morrisons in the UK, is continuing to perform “strongly”.
Ocado’s technology solutions business saw a marked increase thanks to international expansion. During the period, two ‘Customer Fulfilment Centres’ (CFCs) were opened alongside six modules, bringing Ocado’s total to 25 sites and 105 live modules by the period end. A CFC was opened in Calgary, Canada, in March, while another went live outside Tokyo in April.
Time Steiner, chief executive officer of Ocado Group, said: “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.”