Shares in UK online retailer Ocado have dived this morning despite the UK online grocer swinging into a first-half net profit.
Shares in the retailer were down 11.23% at 9:32 BST to 166p a share after it today (27 June) announced a GBP2.1m net profit for the half-year ended 15 May against a GBP6.7m loss in the prior-year period.
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The retailer also swung to a first-half operating profit of GBP2.4m from a loss of GBP2.7m last year, it reported today (27 June).
Revenue for the six months were up 20% to GBP277m.
It also announced a deal with French grocery retailer Carrefour to trial a range of authentic French produce.
The supply partnership with Carrefour will run from 14 July, from which time Ocado will begin trialling the ‘Reflets de France’ range of authentic French produce to all customers across the UK. The deal, Ocado said, is “an important step” in its strategy to offer “the broadest and most diverse grocery range to all our customers in the UK”.
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By GlobalDataThe deal will ease the pressure on its private-label partnership with Waitrose, which is set to begin online operations within the M25 region shortly, a key area for Ocado.
“We are focused on increasing capacity to meet demand and improve delivery timeliness and order accuracy,” said Ocado’s CEO, Tim Steiner. “We are delighted to announce our new supply partnership with Carrefour, an important development in our strategy to offer the broadest and most diverse grocery range to all our customers in the UK.”
