Ocado revenues up, but profits down

Online grocer Ocado has reported a 12.7% increase in group revenue for 2017, but profits were down as the company has been ramping up its investment in technology and automation.

Group revenue for 2017 was £1,463.8m, while retail revenue was up 12.4% at £1,346.1m.

However, the company posted a loss of £500,000, compared to a £12m profit in 2016. On the plus side, Ocado did take some important steps forward in 2017 in sealing deals with retailers beyond the UK.

Commenting on the 2017 performance, Tim Steiner, Chief Executive Officer of Ocado, said: “The last twelve months have been transformational for Ocado. We have primed our Ocado Solutions business for growth and received an important validation of the business model through our latest partnerships with Groupe Casino and Sobeys. Looking ahead, we are confident that we will be able to do further deals with the momentum of new signings building over time.  

“At the same time, our unrelenting focus on our customers in the UK has delivered 12.4% growth in retail revenue and further significant market share gains as well as a 4.5% increase in Retail EBITDA. We have ramped up capacity in our revolutionary CFC at Andover, which opened at the end of 2016, and prepared the way for the opening of our fourth CFC, in Erith, this year. 

“Now is the time to take advantage of our growth opportunities. We will invest to ramp up our new solution in both Erith and Andover and to have the right resources in place to meet growing demand for the Ocado Solutions offer. We believe that taking advantage of these international opportunities now will make our virtuous cycle turn faster in the years ahead and we expect that to translate into higher returns on capital. We look forward to our future opportunities and challenges.”