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Ocado JV fuels 11% sales jump and global ambitions

Date: 26 March 2024

1 minute read

26 March 2024

If you are covering Ocado’s Q1 trading statement, please see a comment below from Chris Beckett, head of equity research at Quilter Cheviot:

“Ocado’s latest UK retail joint venture update signals a robust rebound from post-pandemic normalisation, with a commendable 11% year-on-year sales surge in Q1, backed by a 6% climb in its customer base. The strategic price inflation of 2.2%—below market average—positions Ocado competitively for continued growth. Looking ahead, Ocado is expected to continue this upward trajectory with significant revenue growth.

“The UK joint venture represents about 10% of group valuation, yet it showcases Ocado’s cutting-edge technology’s global potential. Eyes are now set on pivotal updates from international partners, particularly in Australia and the US.

“Despite its current unprofitable status and cash burn, Ocado’s pioneering stance in food retail automation and its impressive global partner network affirm our confidence in maintaining a buy recommendation."

Tim Skelton-Smith

Tim Skelton-Smith

Head of External Communications

Notes to Editors:

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