Ocado's Sales Growth Edges Higher In Latest Quarter

By Publications Checkout
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".

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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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