Ocado Group has achieved phenomenal outcomes for revenues, profits, and cash flows for the 52 week period that ended December 1, 2024.
Financial Performance
- Total Group revenue rose by 14.1% to reach £3.2bn.
- Technology Solutions revenue increased by +18.1%.
- Growth in Ocado Logistics revenue was +7.6%.
- Growth of +13.9% in Ocado Retail (ORL) revenue.
- Statutory revenue total was £1.2 bn against £1.1bn(FY23 over 53 weeks)
In FY23 breakdown range of £51.6m now stands at £153.3m while Technologh Solutions EBITDA is the most with £80.9m with a mark of 16% {(FY23: £15.4m)}. Rest is introduced through:
- Ocado Logistics EBITDA: £31.1 m (FY23: £30.1m)
- Ocado Retail EBITDA: £44.6 m (FY23: £10.4m)
Operational And Strategic Progress
Ocado Group experienced both strategic and operational growth by adding 12 new modules which brought the total active module count to 123 along with 3 new Customer Fulfilment Centres (CFCs). The were implementation of Re:Imagined technology which involves On Grid Robotic Pick(OGRP) and Automated Frameload (AFL) systems harvested 9.1% Higher OSP CFC Productivity for Ocado Logistics. Also, 30% of volume mark robotically picked at Luton were observed by year end. Along with this, an 14% sales increase portrays the rapid growth of Ocado Retail as the fastest growing grocer in the UK achieving astonishingly 17.5% sales growth in Q4.
FY25 and Mid-Term Outlook
Ocado Group anticipated a 10% growth in Technology Solutions revenues for FY25 and expected growth in the EBITDA margin to 20-25%. The company plans to commence with seven new CFC launches starting with Warsaw CFC in FY25 and continuing through FY28. Additionally, Ocado Retail revenue is expected to grow at a rate higher than 10% while profits are expected to achieve an underlying EBITDA margin of around 4%. Further, high single digit revenue is expected from Ocado Logistics. The company remains keen on cost discipline while anticipating investment in recurring revenues through Technology R&D will be about 20% by FY27. Due to aggressive cost reduction and restricted capital expenditure, Ocado is expected to achieve cash flow positive status by FY26.
Revised Meeting Minutes
As of November 1, 2024, leadership within the company was strengthened after the appointment of Adam Warby as Chair. From early April 2025, Ocado Retail will be deconsolidated and will be treated as a joint venture. During the meeting, Adam Warby stated that the company is actively working to attend to the partners’ requirements in order to enhance efficiency and expand the scope of their operations. Tim Stein, Ocado’s CEO, stated that automation at the company has increased CFC productivity by approximately 100% in the last decade which has been one of the most impressive feats for the company. Ocado Retail in the UK has had one million active shoppers for the first time ever. The Ocado Group remains focused on positioning itself as the leader in in technology and logistics, directing its attention towards expansion opportunities for grocery business around the globe.
