Ocado’s first-half revenue rose 54% to £1.0bn, driven by one-off compensation payments from Kroger and Sobeys for the cancellation and early closure of their Ocado-run Customer Fulfilment Centres (CFCs).
Excluding these payments, first-half revenue rose 1% to £0.7bn and underlying cash profit (EBITDA) fell by 11% to £81mn. Weakness was driven by double-digit declines in Technology Solutions, offset only marginally by slim growth in its Logistics business.
Free cash flow improved from an £83mn outflow to a £75mn inflow, driven by the compensation payments. Net debt, including lease liabilities, fell by £0.1bn to £1.0bn.
Full-year guidance was reiterated, with Technology Solutions revenue expected to be around £0.5bn (2025: £0.6bn). Logistics revenue is expected to grow by a mid-single-digit percentage (2025: £0.8bn).
Several planned CFCs set to open in 2026-2028 have been delayed by 1-2 years.
The shares fell 15.3% in early trading.
Our view
HL view to follow.
Ocado key facts
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This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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