Subscribe Login
DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5
Technology

Ocado's Earnings Jump On Pandemic Demand Boost

Online grocer and technology group Ocado Group has reported a 69% increase in 2019-20 core earnings, boosted by the pandemic generating huge demand for home delivery.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose to £73.1 million (€83.3 million) in the year to Nov. 29 2020, from £43.3 million (€49.4 million) in 2018-19. The company had forecast earnings 'over £70 million'.

Group revenue rose 32.7% to £2.33 billion (€2.66 billion) with revenue from the retail business, a joint venture with Marks & Spencer, up 35% to £2.19 billion.

Fees invoiced to its International Solutions partners rose more than 52% to £123.9 million.

Shares in Ocado, which have more than doubled over the last year, closed Monday at 2,850 pence, valuing the business at £20.6 billion.

Automated Warehouses

That valuation has been mainly driven by demand for its state-of-the-art robotically operated warehouses from supermarket chains around the world, including Kroger in the United States, Casino in France and Aeon in Japan.

The group said retail revenue growth in 2020-21 year would be highly dependent on the length of COVID-19 restrictions and the timing of planned additional capacity.

Ocado plans to open three new UK warehouses in 2021 which will provide 40% more capacity.

It forecast double-digit percentage revenue growth in its UK Solutions & Logistics business in 2020-21, reflecting the ramp-up of new capacity.

Revenue from its International Solutions partners was expected to increase to around £50 million, reflecting the benefit of revenue from new warehouse sites.

News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.

Stay Connected With Our Weekly Newsletter

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our Terms & Conditions and Privacy Policy
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days