Ocado, the UK’s largest online- only food retailer, posted first-quarter sales that slightly exceeded analysts’ estimates and said it expects to stay ahead of the pack in a tough food retail market.
Revenue rose 15 percent to £252 million, excluding income from a distribution agreement with Morrison's, the company said in a statement. That compared with growth of 18 per cent in the same period last year and the median analyst estimate of 14.5 per cent.
“We remain committed to improving the quality of the proposition to customers, which we believe will support further growth,” chief executive officer Tim Steiner said in the statement. “Notwithstanding the uncertainty that remains in the marketplace, we expect to continue growing slightly ahead of the online grocery market.”
The shares rose 0.6 per cent to 372.6 pence in London this morning. They’ve fallen 6.9 per cent this year.
Ocado reported its first annual pretax profit in February, as it benefited from the growing number of British customers shopping for groceries online.
The 15-year-old company is seeking opportunities to partner with international retailers, augmenting distribution agreements it has with UK supermarkets Morrison's and Waitrose. In February, Ocado said it was in discussions to either introduce or improve the online retail business of several potential partners.
News by Bloomberg, edited by ESM
