Retailer Expects Ocado Retail to Achieve Positive EBITDA by Year-End

  • Ocado restates FY23 guidance despite increased losses
  • Losses attributed to depreciation, amortisation, exceptional items, and patent infringement litigation costs
  • Online market share of Ocado Retail grows to 30% with a slight increase in customer base
  • Ocado Logistics EBITDA increases to £14.6m, Technology Solutions arm posts positive EBITDA
  • CEO Tim Steiner expresses confidence in the company’s progress and potential for growth

Ocado has restated its full-year guidance for FY23 despite posting a loss of £289.5m for the half year ended May 28, 2023. The losses are attributed to depreciation and amortisation costs, exceptional items such as a UK network capacity review and patent infringement litigation with AutoStore Technology AS. Ocado Retail’s online market share grew from 12.7% to 30%, and its customer base increased by 2,000 customers. The company expects Ocado Retail to achieve a modestly positive EBITDA by the end of the year. Ocado Logistics’s EBITDA rose to £14.6m from £14.5m, while the Technology Solutions arm posted an EBITDA of £5.9m compared to a loss in the previous half-year. CEO Tim Steiner remains confident in the company’s progress and international ambitions.

Factuality Level: 8
Factuality Justification: The article provides accurate information about Ocado’s financial performance, including losses, revenue growth, market share increase, and CEO comments on progress and future plans. It also includes specific details about the reasons for the losses and the company’s expectations for the rest of the year.
Noise Level: 3
Noise Justification: The article provides relevant information about Ocado’s financial performance and its various arms, including losses, revenue growth, and market share increase. It also includes comments from the CEO on their progress and future ambitions. However, it lacks in-depth analysis or exploration of long-term trends or consequences of decisions.
Financial Relevance: Yes
Financial Markets Impacted: Ocado’s financial performance impacts its stock price and investor sentiment.
Financial Rating Justification: The article discusses Ocado’s financial results, including losses, revenue growth, and EBITDA for different segments of the company. This information is relevant to investors and can impact the company’s stock price and market sentiment.
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