Group Revenues Grow 7.2%, Online Grocery Market Share at 12% in UK

  • Ocado Group reports a loss before tax of £176.9m in FY21
  • Group revenues increased by 7.2% to £2.5bn
  • Labour shortages and robotics roll-out impacted the company’s performance
  • Ocado Retail sales rose by 4.6% to £2.3bn
  • International Solutions revenues increased to £66.6m
  • Online grocery market share in UK at 12%
  • Plans to open nine new Customer Fulfilment Centres in 2022 and beyond
  • Investments of £50m for Ocado Retail growth in FY22
  • UK Solutions and Logistics EBITDA expected to increase by 50%

Ocado Group has reported a loss before tax of £176.9m for the 52 weeks ending 28 November 2021, an increase from FY20’s £52.3m, due to investments in robotics and AI technology and opening five global fulfilment centres. Labour market challenges and operating disruption at Erith contributed to a drop in EBITDA margin to 6.6% (down from £73.1m to £61.0m). Despite this, group revenues increased by 7.2% to £2.5bn, with all business segments growing. Ocado Retail sales rose year-on-year by 4.6% to £2.3bn and reached 41.5% above pre-Covid levels, driven by a 22.4% increase in customer numbers to 832,000 and a 11.9% rise in orders. International Solutions revenues increased year-on-year from £16.6m to £66.6m. The company cited strong underlying demand for online grocery in the UK, representing 12% of the total market share. Ocado plans to open nine new Customer Fulfilment Centres (CFCs) in 2022, nearly doubling operational sites to 19, with additional sites planned for 2023 and 2024. The company also announced £50m investments for Ocado Retail growth in FY22, expecting a 50% increase in UK Solutions and Logistics EBITDA.

Factuality Level: 10
Factuality Justification: The article provides accurate information about Ocado’s financial performance, its investments in technology, expansion plans, and CEO Tim Steiner’s perspective on the online grocery market.
Noise Level: 3
Noise Justification: The article provides relevant information about Ocado’s financial performance, including losses, revenue growth, and expansion plans. It also includes insights from the CEO on the future of online grocery shopping. The content is focused and informative without any apparent noise or filler material.
Financial Relevance: Yes
Financial Markets Impacted: Ocado Group’s stock price and investments in robotics and AI technology impact the financial markets.
Financial Rating Justification: The article discusses Ocado Group’s financial performance, including losses, revenue growth, and investment plans, which can affect its stock price and the company’s position in the market. It also mentions the impact of online grocery demand on food retailers and potential partnerships with other companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.

Reported publicly: www.retailsector.co.uk