17th Jul 2025 10:29
(Alliance News) - Ocado Group PLC on Thursday reported a widened pretax loss but a post-tax profit, with revenue also increasing.
The Hatfield, England-based online grocery retailer, which is in a joint venture with Marks & Spencer Group PLC, reported a GBP611.8 million post-tax profit for the six months ended June 1. This was against a GBP153.3 million loss for the period ended June 2, 2024.
The company, however, also made a pretax loss from continuing operations of GBP175.5 million, compared with the prior year's GBP139.1 million loss.
Ocado made a GBP787.3 million post-tax profit from discontinued operations, against a GBP14.2 million loss the year before. The operations in question are the results of Ocado Retail Ltd or ORL, and Ocado Group transferred control of ORL to Marks & Spencer on April 6.
Ocado said that following its deconsolidation, ORL is now reported as an associated undertaking, but that its economic interest remains unchanged. The group's post-tax profit included a GBP782.6 million "reported gain" on "the statutory valuation of 50% ORLʼs equity upon deconsolidation".
Ocado Retail's revenue rose 16% to GBP1.53 billion from GBP1.31 billion. Adjusted earnings before interest, tax, depreciation and amortisation jumped 61% to GBP33.3 million from GBP20.7 million. Its post-tax loss narrowed to GBP24.9 million from GBP27.8 million.
Group revenue from continuing operations rose 13% to GBP674.0 million from GBP595.4 million. Technology Solutions revenue increased 15% and Ocado Logistics saw 12% top-line growth.
Operating costs rose to GBP795.0 million from GBP727.0 million, and finance costs increased to GBP66.1 million from GBP42.3 million. Ocado incurred a GBP3.9 million loss on its share of JV and associate results, against a gain of around GBP200,000; and income tax expenses totalled GBP2.4 million, against an approximate GBP600,000 credit.
Ocado did not declare a dividend for the period, unchanged from the year before.
Looking ahead, for the full year Ocado expects approximately 10% revenue growth and a 20% to 25% Ebitda margin for Technology Solutions, and high mid-single digit revenue growth with around GBP30 million in Ebitda for Ocado Logistics.
The company said its "core priority" is to "turn cash flow positive during FY26".
"Ocado Group has delivered a strong first half and we have reached important milestones both in our UK business, as well as across our international partnerships," commented Chief Executive Officer Tim Steiner.
Shares in Ocado climbed 12% to 264.90 pence on Thursday morning in London.
By Emma Curzon, Alliance News reporter
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