- Ocado’s EBITDA exceeded estimates, reaching GBP 153.3 million compared to an estimate of GBP 146.1 million and a previous year figure of GBP 51.6 million.
- Retail EBITDA rose to GBP 44.6 million, slightly beating the estimate of GBP 44.3 million and a significant increase from GBP 10.4 million last year.
- Logistics EBITDA grew by 3.3% year-on-year to GBP 31.1 million, surpassing the estimate of GBP 30.5 million.
- Technology Solutions EBITDA reached GBP 80.9 million, well above last year’s GBP 15.4 million and the estimate of GBP 79.7 million.
- The company reported a pretax loss of GBP 374.5 million, which was a 4.9% improvement year-over-year but wider than the estimated loss of GBP 339.9 million.
- Total revenue increased by 14% year-on-year to GBP 3.16 billion, beating the estimate of GBP 3.12 billion.
- Logistics revenue grew by 7.6% to GBP 718.0 million, outperforming the estimate of GBP 699.4 million.
- Technology Solutions revenue increased by 18% to GBP 496.5 million, slightly above the estimate of GBP 494.2 million.
- Retail sales were up by 14% to GBP 2.69 billion, surpassing the estimate of GBP 2.68 billion.
- The average orders per week rose by 12% to 442,000, with an average order size increase of 1% to GBP 122.09, exceeding estimates of GBP 119.99.
- No final dividend per share was declared.
- Future forecasts include retail sales growth above 10%, Technology Solutions revenue growth around 10%, a retail EBITDA margin of approximately 4%, and a Technology Solutions EBITDA margin between 20% and 25%.
- The company plans to open at least seven Customer Fulfillment Centres over the next three years.
- Expected high mid-single-digit percentage revenue growth for FY25 in Ocado Logistics with EBITDA around GBP 30 million.
- Projected underlying cash outflow of approximately GBP 200 million for FY25, with a target to become cash flow positive by FY26.
- Intends to deconsolidate Ocado Retail and transition to equity accounting for the joint venture starting early April 2025.
- Analyst ratings include seven buys, five holds, and five sells.
A look at Ocado Group PLC Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Investors looking at Ocado Group PLC‘s long-term prospects can take note of its Smartkarma Smart Scores. With a strong Growth score of 4, the company is positioned well for expansion and increasing market share. This indicates a positive outlook for future earnings and overall business development. Additionally, the company’s Value score of 3 suggests that it may be trading at a reasonable valuation, providing an opportunity for potential upside in the stock.
However, investors should be mindful of Ocado Group PLC‘s lower Dividend and Resilience scores of 1 and 2, respectively. This indicates that the company may not be a strong dividend payer and could face challenges in turbulent market conditions. The Momentum score of 3 signals moderate market momentum, which could imply stability in the company’s stock performance. Overall, with a focus on growth and a fair valuation, Ocado Group PLC presents an intriguing long-term investment opportunity for those willing to take on some risk.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
