Ocado’s profits up on “robust trading”
Online grocer Ocado has reported that its profits before for 2016 were up almost 22% to £14.5m, and revenues were up almost 15% to £1.27bn. In a statement issued today (31 January), Tim Steiner, Chief Executive Officer of Ocado, said the results “reflect robust trading” in the company’s core business and show continued progress against its strategic objectives “in what has been a challenging retail environment”.
Steiner added: “We commenced operations at our new Customer Fulfilment Centre in Andover, which has the first installation of our new proprietary technology. At the same time, we have made good progress in improving the efficiency and throughput of our existing operations, increasing our capacity from existing facilities by over 20,000 weekly orders. These developments position us well for future growth, whilst improving our returns and enhancing the service we can offer our customers.
“In this ever evolving retail environment, we look forward to further developing our capabilities through innovation, creating the next generation eCommerce capabilities that will ensure our offer remains compelling for both retail and OSP customers alike.”
The results were welcomed by the markets, as Ocado’s share price rose by more than 7% in morning trading.
When Ocado announced its 2015 results in February last year, it said that was in “advanced discussions with multiple potential international partners” for its Ocado Smart Platform. One year on, Ocado is still in talks with international retailers – but there have been no confirmed deals.