Ocado Group revenues up by 20%

Online grocery and grocery fulfilment technology operation Ocado Group has seen first half financial year (H1) revenues grow by over 20% compared to the same period last year. Ocado is investing in fulfilment capacity to meet projected growth in demand.

Group revenue was £1.3 billion in H1, that ended May 30th. Retail sales grew by 19.8% to £1.2 billion, and its technology business Ocado Smart Platform grew to £26.6 million – £25 million more than H1 2020 – as it announced a new partnership with Spain’s Auchan Retail.

Pre-tax losses in H1 fell to £23.6 million from £40.6 million in H1, 2020, as it ploughs money into technology, fulfilment capacity and systems.

Ocado Retail, jointly owned by Marks & Spencer, has 777,000 active customers, a 22% growth on H1 2020.

Ocado says its retail sales will be “highly dependent on consumer behaviour following relaxation of Covid-19 restrictions,” but it also says it is “encouraged by performance in Q2 which shows a strong increase in customer transactions offsetting the normalisation of the value of the average basket”.

Ocado Group chief executive Tim Steiner said: “As we head towards a post Covid-19 future, it is increasingly clear that the landscape for grocery worldwide has changed, for good. Over the last eighteen months, we have shown that the Ocado model works even in the most challenging and fluid of environments. That ours is a proven model in online grocery has been again demonstrated by the strong performance of Ocado Retail, the historic core of the Ocado business, which has led the market in customer experience, increasing sales by 20% in the period, thanks to a significant increase in customer numbers, while continuing to show sustainable and industry-leading profitable growth.”