Ocado (LON:OCDO), the British online supermarket and technology group, reported a smaller annual loss and said it was on track to hit its key target of turning cash flow positive in its 2025-26 year.
The group runs an online supermarket in Britain through a joint venture with Marks & Spencer (OTC:MAKSY), though its value is driven by the sale of its cutting-edge warehouse technology to retailers around the world.
Ocado said on Thursday it had made a pretax loss of 374.3 million pounds ($473.8 million) in the year to Dec. 1 2024, versus a loss of 387 million pounds in 2022-23.
At the core earnings, or adjusted earnings before interest, tax, depreciation and amortisation (EBITDA), level, Ocado's preferred metric, the group made 153.3 million pounds, up from 51.6 million pounds in 2022/23, reflecting an improved performance in both its technology solutions and retail divisions.
Ocado shares are down 33% year-on-year with the market concerned by a slowdown in the rollout of robotic sites for its grocery retail partners and a lack of further technology deals.
Its most important grocery partner, Kroger (NYSE:KR) in the United States, has slowed down its rollout of robotic warehouses, or customer fulfilment centres (CFCs) as Ocado calls them, while its Canadian partner Sobeys has paused the opening of a fourth warehouse.
Ocado said at least seven more CFCs would go live over the next three years.
But it said two of these - CFCs for Kroger in Charlotte and Phoenix - were not now expected to go live until early in its 2025-26 year.
($1 = 0.7900 pounds)
