UK: Ocado losses narrow as sales jump

By Katy Askew | 7 February 2013

  •  Losses drop, adjusted earnigns in the black
  •  Sales up 13.9%
  •  New distribution centre on-track 
Ocado positioned for growth

Ocado positioned for growth

Online grocer Ocado today (7 February) revealed its losses narrowed in the year to 2 December amid higher sales.

The group booked a loss of GBP600,000 (US$940,291) in the 53 weeks to 2 December, down from a loss of GBP2.4m in the comparable period of last year.

The improved bottom line was driven by higher sales, the group indicated, which rose 13.9% to GBP731.9m.

Ocado has ramped up investment to support growth in the coming 12 months. The group, which previously operated out of one distribution site, is opening a second centre in Dordon. The new facility is expected to come on line by the end of this month. Stripping out exceptional items associated with this investment, the group booked adjusted profits of GBP1.8m.

Shares in the retailer were up 7.23% at 10am (GMT), climbing to 111.41 pence. Ocado's stock has rallied over the year, and saw a further spike in value after the appointment of former Marks and Spencer boss Sir Stuart Rose last month.

Show the press release

 

OCADO GROUP PLC

Preliminary results for the 53 weeks ended 2 December 2012

7 February 2013 - Ocado Group plc ("Ocado") today announces its unaudited preliminary results for the 53 weeks ended 2 December 2012.

Strategic and operational highlights · Exited 2012 with strong momentum in customer growth and basket size maintained · Service metrics continue at consistently high standards · Range extended by 40% to over 28,000 SKUs (2011: 20,000) · Significant progress in pricing including the introduction of Low Price Promise, our basket matching initiative · Dordon Customer Fulfilment Centre ("CFC2") on track to open by the end of February, and remains on budget

Key financials

53 Weeks 2012 Change vs 2011 52 Weeks 2012 Change vs 2011

£million

£million

Gross sales1 731.9 +13.9% 716.2 +11.4% EBITDA2 34.5 +23.9% 33.5 +20.4% Adjusted3 profit before tax 1.8 +£4.2 million 1.3 +£3.7 million

· Net debt of £55.2 million (2011: £19.2 million) · Cash and cash equivalents of £89.6 million (2011: £92.1 million)

Statutory highlights · Revenue of £678.6 million (2011: £598.3 million) · Loss before tax of £0.6 million (2011: £2.4 million)

Tim Steiner, Chief Executive Officer of Ocado, said: "We continued to achieve double digit sales growth during 2012 with increasing rates of sales and new customer momentum as we moved into 2013. This has been driven by further improvements to our core offer to customers - better value, wider ranges and enhanced service.

"Shopping online for groceries is clearly of increasing importance to consumers. In 2013, we will continue to improve the attractiveness of Ocado to customers and we shall substantially increase our capacity with the opening of our second fulfilment centre, creating over 1,000 jobs in the Midlands."

Duncan Tatton-Brown, Chief Financial Officer of Ocado, said: "We have ended 2012 with a solid financial platform and a cash position of £89.6 million. We have worked hard at improving overall efficiency in our operations and margins are improving. The introduction of a significant increase in fulfilment capacity this year to meet growing demand, and our continued efforts to drive efficiency, will enable us to demonstrate the longer term benefits of our business model."

Results presentation A results presentation will be held for investors and analysts at 9:30am today at the offices of M:Communications, 11th floor, 1 Ropemaker Street, London, EC2Y 9AW. Presentation material will be available online at results12.ocadogroup.com.

Contacts · Tim Steiner, Chief Executive Officer on 020 7920 2330 today and 01707 228 000 · Duncan Tatton-Brown, Chief Financial Officer on 020 7920 2330 today and 01707 228 000 · David Hardiman-Evans, Head of IR & Corporate Finance on 020 7920 2330 today and 01707 228 000 · Michelle Shearly, Public Relations Manager on 01707 382 274 · Nick Miles, Ann-marie Wilkinson or Charlotte Kirkham at M:Communications on 020 7920 2330

Notes 1. Gross sales include revenue plus VAT and marketing vouchers. 2. EBITDA is a non-GAAP measure which we define as earnings before net finance cost, taxation, depreciation, amortisation, impairment and exceptional items. 3. Adjusted to exclude exceptional items.

Where deemed relevant by the Group, references to financial performance in the highlights and the business reviews are stated on a proforma 52-week basis to 25 November 2012, unless specified otherwise.

 

Original source: Ocado

Sectors: Financials, Multichannel, Retail

Companies: Ocado, Marks and Spencer

View next/previous articles

Currently reading -

UK: Ocado losses narrow as sales jump

There are currently no comments on this article

Be the first to comment on this article

Related research

Online Grocery Retailing 2012

This report focuses on four key issues. It provides an analysis into the context the sector operates in by focusing on the wider trends impacting online grocery and crucially it provides all the data needs, by showing how developed online grocery is ...

Marks and Spencer Group plc - Strategy and SWOT Report

Marks and Spencer Group plc - SWOT, Strategy and Corporate Finance Report, is a source of comprehensive company data and information. The report covers the company’s structure, operation, SWOT analysis, product and service offerings, detailed financi...

Marks and Spencer Group plc - Mergers & Acquisitions (M&A), Partnerships & Alliances and Investment Report

MarketLine's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organization to sustain its competitive advantage....

Related articles

Interview: UK snacks firm New York Delhi eyes growth away from supermarkets

UK snacks firm New York Delhi has secured a listing with Australia's largest retailer Woolworths Ltd but the company insists it is aiming to grow without "selling out" to the large supermarket chains.

UK: Retailers commit to price transparency campaign

Aldi and UK retailers The Co-operative Group and Waitrose have signed up to a campaign run by consumer watchdog Which? to support simpler, clearer and more consistent pricing in supermarkets in the country.

UK: New Morrisons stores to trial management changes

Morrisons, the UK's fourth-largest grocer, is to test new management structures in seven stores it plans to open later this year.

Welcome to the home of food information, insight & intelligence

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page