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Ocado's Sales Growth Edges Higher In Latest Quarter

Published on Dec 13 2018 1:50 PM in Technology tagged: UK / Online / Ocado

Ocado's Sales Growth Edges Higher In Latest Quarter

British online grocer Ocado said on Thursday retail revenue grew 12% in its latest quarter, in line with its guidance for the year, as new capacity helped it win new customers.

The firm said its retail revenue was £390.7 million ($493.2 million) in the 13 weeks to 2 December, its fiscal fourth quarter, having risen 11.5% in the previous quarter.

In July Ocado forecast retail revenue growth of 10-15% for the full 2017-18 year.

Transformative Year

Shares in Ocado have risen 126% over the last year thanks to four major overseas technology partnerships, including its biggest yet with U.S. group Kroger.

"Although in many respects 2018 has been a transformative year for Ocado, the story has only just begun," said Chief Executive Tim Steiner, adding that the new year would bring "substantial opportunities".

Ocado said new capacity it had brought on stream at its robotic distribution centres in Andover, southern England, and Erith, near London, had enabled it to achieve double-digit growth in new customer acquisitions in the fourth quarter.

Average orders per week rose 13.1% to 320,000, though average order size did dip 1.0% to £104.9.

Shares in Ocado closed Wednesday at 793.6 pence, valuing the business at £5.43 billion.

News by Reuters, edited by Checkout. Click subscribe to sign up for the Checkout print edition.

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