UK online retailer Ocado saw its share price tumble this morning (2 July) as the group reported a first-half loss, despite increasing sales.
The grocer reported a loss before tax of GBP3.8m (US$5.8m) in the 24 weeks ended 19 May due to charges linked to the distribution deal signed with Morrisons and infrastructure costs related to the opening of new warehouses. The result compared to a profit of GBP200,000 last year.
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Ocado also reported an operating loss in the period of GBP1.1m versus an operating profit of GBP1.7m in the prior year. EBITDA, however, was up, climbing 28.7% to GBP19.2m.
First-half sales rose 15.6% to GBP355.9m and the firm said it expected to continue to grow broadly in line with the market.
CEO Tim Steiner said it had been an “extremely busy” first half of the year.
“We remain well placed to take advantage of the accelerating structural changes in the industry,” he added.
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By GlobalDataOcado’s share price was down 2.31% at 305 pence at 09:43 BST today.
Click here for coverage of Ocado’s analyst call to discuss the results.
