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Ocado Retail Returns To Positive Earnings In 2022/23 Year

By Reuters
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Ocado Retail Returns To Positive Earnings In 2022/23 Year

British online supermarket Ocado Retail has said it will meet its forecast of a return to positive earnings for its full 2022/23 year after revenue growth accelerated in its fourth quarter.

The business, a 50:50 joint venture between Ocado Group and Marks & Spencer, said its revenue rose 10.9% in the 13 weeks to November 26 – a fourth consecutive period of quarter-on-quarter growth and an increase on the 7.2% reported for the third quarter.

Customer Base

Ocado Retail said it benefited from a 5.9% rise in active customers to 998,000, a 4.8% increase in volumes, or number of items sold, and a 3.8% rise in average basket value.

'Our trading performance, and our focus on costs, has translated through to our bottom line, returning to positive EBITDA for the full year,' the joint venture said.

It made a loss of £4 million (€4.64 million) in the 2021-22 year.

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Ocado Retail also said it hit its highest ever level of sales over the peak Christmas trading period. Overall sales increased 7% between December 20 and December 24.

For the new 2023/24 year, the joint venture forecast revenue growth in the 'mid-high single digits'.

'Significant Progress'

“We made significant progress in 2023," commented Hannah Gibson, Ocado Retail chief executive. "We have focused first and foremost on being a great shopkeeper, improving our unbeatable range, great value and unrivalled experience – all underpinned by improved cost efficiencies.

"We are starting the new year with over one million active customers. Over the next 12-18 months, we will be embedding the foundations we have laid this year and raising the bar again for online grocery shopping. We have a really strong platform to build on in 2024.”

Additional reporting by ESM

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