Ocado shares jump on new European fulfilment centre deal
(Alliance News) - Ocado Group PLC shares jumped on Tuesday after the firm announced a new customer fulfilment centre agreement with an unnamed "fast-growing European retailer".
Shares in the Hatfield, Hertfordshire-based grocer and warehouse technology company were up 11% at 196.15 pence in London on Tuesday afternoon.
Ocado said it has agreed to build a large automated customer fulfilment centre, or CFC, which is due to go live in financial 2028.
The grocer did not disclose the financial terms of the agreement.
The facility will be equipped with Ocado's Re:Imagined technology suite, including its 600s bot, On-Grid Robotic Pick system and a fully automated freezer.
The retailer is expected to transfer its existing online order volumes into the new site, which Ocado said will begin operations at just over half of its design capacity.
Chief Executive Tim Steiner said: "I'm delighted that Ocado's world-leading automation and robotics have been chosen to help drive forward the online operations of another leading retailer."
He added: "Together with our agreement with Asda earlier this year, this partnership highlights the growing demand for our solutions across the breadth of our technology offering."
The company said the transaction is not expected to have a material financial impact in financial 2026. It reiterated guidance to turn cash flow positive in the second half of the current financial year and to achieve positive cash flow for financial 2027.
By Eva Castanedo, Alliance News senior economics reporter
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