17th Jan 2023 09:44
(Alliance news) - Ocado Group PLC on Tuesday said Ocado Retail Ltd reported that revenue inched up slightly in the the 13 weeks to November 27, its financial fourth quarter.
Ocado Retail is a joint venture between online grocer Ocado and food, clothing and homewares retailer Marks & Spencer Group PLC, with both companies holding a 50% interest.
Shares in Ocado were down 5.5% at 763.82 pence each on Tuesday morning in London, while M&S shares were 0.8% higher at 151.25p each.
Revenue rose 0.3% against the previous year to GBP549.4 million in the quarter. Average orders in the period were up 1.9% to 382,000, while average basket value fell 1.3% to GBP117, as price inflation was offset by fewer items.
Full-year revenue totalled GBP2.2 billion, which represents a 3.8% decline against the year prior but up 40% against financial 2019. For financial 2021, revenue was up 4.6% to GBP2.29 billion from GBP2.19 billion the year before.
Ocado noted that its current headwinds related to inflationary costs, capacity investments to support future growth and higher marketing costs.
Ocado Retail Chief Executive Officer Hannah Gibson says: "The year ahead will set us up to deliver strong sales and profit growth over the mid-term. In 2023 we will continue to strengthen and improve our leading customer proposition, including investing in value to help customers manage cost of living pressures, while keeping tight control of our costs. We will also be doing much more to unlock the potential of our partners, combining the benefits of Ocado's technology with the magic of M&S products."
Ocado Retail expects to be close to break-even earnings before interest, tax, depreciation and amortisation in financial 2022.
Looking ahead to financial 2023, it expects "marginally positive" Ebitda on mid-single-digit percentage revenue growth. It added that it has started financial 2023 strongly with record Christmas sales, up 15% over the five days before Christmas and orders up 13%.
In September, Ocado Retail had said revenue edged up 2.7% to GBP531.5 million for the 13 weeks to August 28, compared to a year before. This was a "significant" improvement against the decline recorded in the second quarter.
By Xindi Wei, Alliance News reporter
Comments and questions to [email protected]
Copyright 2023 Alliance News Ltd. All Rights Reserved.