|
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 £611.8 million post-tax profit for the six months ended June 1. This was against a £153.3 million loss for the period ended June 2, 2024. The company, however, also made a pretax loss from continuing operations of £175.5 million, compared with the prior year’s £139.1 million loss. Ocado made a £787.3 million post-tax profit from discontinued operations, against a £14.2 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 £782.6 million ‘reported gain’ on ‘the statutory valuation of 50% ORL¼s equity upon deconsolidation’. Ocado Retail’s revenue rose 16% to £1.53 billion from £1.31 billion. Adjusted earnings before interest, tax, depreciation and amortisation jumped 61% to £33.3 million from £20.7 million. Its post-tax loss narrowed to £24.9 million from £27.8 million. Group revenue from continuing operations rose 13% to £674.0 million from £595.4 million. Technology Solutions revenue increased 15% and Ocado Logistics saw 12% top-line growth. Operating costs rose to £795.0 million from £727.0 million, and finance costs increased to £66.1 million from £42.3 million. Ocado incurred a £3.9 million loss on its share of JV and associate results, against a gain of around £200,000; and income tax expenses totalled £2.4 million, against an approximate £600,000 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 £30 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. Copyright 2025 Alliance News Ltd. All Rights Reserved.
|
