Ocado reports 8% drop in retail value to £1bn

Ocado Group has reported retail revenue of £1.1 billion in its interim results for the 26 weeks up to 29 May 2022.

Retail revenue was down by eight per cent versus the first half of 2021 -- a reflection of the grocery market contracting post pandemic and the rising cost of living crisis in UK, the company said.

The group’s overall revenue was down four per cent to £1.3 billion, with Ocado stating that strong growth in international solutions and UK solutions and logistics had been offset by the fall in its retail revenue.

Despite the revenue drops, acquisition at Ocado Retail was reportedly up by 12 per cent to 867,000 in the first half of 2022.

The financials also showed that Ocado Retail's Purfleet warehouse, which opened in September 2021, had achieved its target open settlement protocol is on track to deliver a 22 per cent return on capital employed, with a clear path to 30 per cent.

Commenting on the results, Tim Steiner, chief executive of Ocado Group, said: "The last six months has seen significant progress at Ocado Group and we have put all the building blocks in place to deliver profitable growth and strong cash flows.

“Our International Solutions business has good momentum, with 16 CFCs now open, of 58 committed so far.

“Each of these CFCs will generate dependable, recurring cash flows and attractive returns on capital.”

He added: “11 of the world's leading grocers are looking to Ocado to provide the technology and solutions to power their online grocery activities and our new partner pipeline is as strong as ever.”

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