Ocado sees profits leap by 22%

Ocado has reported its profits before tax for 2016 were up almost 22% to £14.5 million and revenues were also up 15% to £1.27bn.

In a statement issued today (31 January), Tim Steiner, Chief Executive Officer of Ocado, said the results “reflect robust trading” in the company’s core business and show continued progress against its strategic objectives “in what has been a challenging retail environment”.

Steiner added: “We commenced operations at our new Customer Fulfilment Centre in Andover, which has the first installation of our new proprietary technology. At the same time, we have made good progress in improving the efficiency and throughput of our existing operations, increasing our capacity from existing facilities by over 20,000 weekly orders. These developments position us well for future growth, whilst improving our returns and enhancing the service we can offer our customers.

“In this ever evolving retail environment, we look forward to further developing our capabilities through innovation, creating the next generation eCommerce capabilities that will ensure our offer remains compelling for both retail and OSP customers alike.”

Ocado’s share price was up by almost 7%, reflecting that markets welcomed the news.

Last year Ocado announced that it was in “advanced discussions with multiple potential international partners” for the Ocado Smart Platform. These talks continue one year on, but there have been no confirmed deals with any of those partners. It remains to be seen whether this once promising grocery retailer can make the profits promised when it was founded.  
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